1、Chapter 4Resources and Trade: The Heckscher-Ohlin Model47Chapter 4 Resources and Trade: The Heckscher-Ohlin ModelnMultiple Choice Questions1.In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border would(a)move the point of production along the production possibilit
2、y curve.(b)shift the production possibility curve outward, and increase the production of both goods.(c)shift the production possibility curve outward and decrease the production of the labor-intensive product.(d)shift the production possibility curve outward and decrease the production of the capit
3、al-intensive product.(e)None of the above.Answer: D2.In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in(a)tastes.(b)military capabilities.(c)size.(d)relative availabilities of factors of production.(e)labor productivities.Answer: D3.In the 2-factor, 2 good Heckscher-Ohlin mod
4、el, a change from autarky (no trade) to trade will benefit the owners of(a)capital.(b)the relatively abundant factor of production.(c)the relatively scarce factor of production.(d)the relatively inelastic factor of production.(e)the factor of production with the largest elasticity of substitution.An
5、swer: B4.In the 2-factor, 2 good Heckscher-Ohlin model, a change from autarky (no trade) to trade(a)will tend to make the wages in both countries more similar.(b)will equalize the wages in both countries.(c)will tend to make the wages in both countries less similar.(d)will tend to make wages equal t
6、o returns to capital.(e)will tend to make rents equal to interest rates.Answer: A5.The Leontieff Paradox(a)supported the validity of the Ricardian theory of comparative advantage.(b)supported the validity of the Heckscher-Ohlin model.(c)failed to support the validity of the Ricardian theory.(d)faile
7、d to support the validity of the Heckscher-Ohlin model.(e)proved that the U.S. economy is different from all others.Answer: D6.The Leontieff Paradox(a)refers to the finding that U.S. exports were more labor intensive than its imports.(b)refers to the finding that U.S. Exports were more capital inten
8、sive than its exports.(c)refers to the finding that the U.S. produces outside its Edgeworth Box.(d)still accurately applies to todays pattern of U.S. international trade.(e)refers to the fact that Leontieffan American economisthad a Russian name.Answer: A7.The 1987 study by Bowen, Leamer and Sveikau
9、skas(a)supported the validity of the Leontieff Paradox.(b)supported the validity of the Heckscher-Ohlin model.(c)used a two-country and two-product framework.(d)demonstrated that in fact countries tend to use different technologies.(e)proved that the U.S.s comparative advantage relied on skilled lab
10、or.Answer: A8.Empirical observations on actual North-South trade patterns tend to(a)support the validity of the Leontieff Paradox.(b)support the validity of the Heckscher-Ohlin model.(c)support the validity of the Rybczynski Theorem.(d)support the validity of the wage equalization theorem.(e)support
11、 the validity of the neo-imperialism exploitation theory.Answer: B9.The Case of the Missing Trade refers to(a)the 9th volume of the Hardy Boys Mystery series.(b)the fact that world exports does not equal world imports.(c)the fact that factor trade is less than predicted by the Heckscher-Ohlin theory
12、.(d)the fact that the Heckscher Ohlin theory predicts much less volume of trade than actually exists.(e)None of the above.Answer: C10.If the Unted States had relatively more capital per worker than Mexico, and if the Leontieff Paradox applied to this trade, then a successful expansion of trade under
13、 NAFTA between Mexico and the United States would tend to benefit which group in the United States?(a)Environmentalists(b)Capitalists(c)Workers(d)Land owners(e)Skilled labor with relatively high levels of human capitalAnswer: C11.According to the Heckscher-Ohlin model, the source of comparative adva
14、ntage is a countrys(a)technology.(b)advertising.(c)human capital.(d)factor endowments.(e)Both (a) and (b).Answer: D12.The Hechscher-Ohlin model states that a country will have a comparative advantage in the good or service whose production is relatively intensive in the _ with which the country is r
15、elatively abundant.(a)tastes(b)technology(c)factor of production(d)opportunity cost(e)scale economyAnswer: C13.One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that _ is (are) identical in all countries.(a)factor of production endowmen
16、ts(b)scale economies(c)factor of production intensities(d)technology(e)opportunity costsAnswer: D14.According to the Hecksher-Ohlin model,(a)everyone automatically gains from trade(b)the scarce factor necessarily gains from trade(c)the gainers could compensate the losers and still retain gains.(d)a
17、country gains if its exports have a high value added.(e)None of the above.Answer: C15.The Heckscher-Ohlin model assumes that _ are identical in all trading countries(a)tastes(b)technologies(c)factor endowments(d)Both (a) and (b).(e)None of the above.Answer: B16.As opposed to the Ricardian model of c
18、omparative advantage, the assumption of diminishing returns in the Heckscher-Ohlin model means that the probability is greater that with trade(a)countries will not be fully specialized in one product.(b)countries will benefit from free international trade.(c)countries will consume outside their prod
19、uction possibility frontier.(d)comparative advantage is primarily supply related.(e)None of the above.Answer: A17.Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins(a)wages and rents should rise in H(b)wages and
20、 rents should fall in H(c)wages should rise and rents should fall in H.(d)wages should fall and rents should rise in H.(e)None of the above.Answer: C18.Which of the following is false (for the Heckscher-Ohlin model)?(a)If tastes are not identical in both countries, wages may still equalize.(b)Differ
21、ences in technologies could be the source of gains from trade.(c)Some groups may gain and some may lose due to trade.(d)Gains for the trade-related winners will tend to be larger than losses of losers.(e)None of the above.Answer: B19.If tastes differed between countries, this could affect(a)wage equ
22、alization due to trade with no specialization.(b)the direction of trade (who exports what to whom).(c)the fact that some groups in a country might lose welfare due to trade.(d)the fact that the country as a whole will gain from trade.(e)None of the above.Answer: B20.Suppose that there are two factor
23、s, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model,(a)European landowners should support U.S.-European free trade.(b)European capitalists should support U.S.-European free trade.(c)
24、all capitalists in both countries should support free trade.(d)all landowners should support free trade.(e)None of the above.Answer: B21.According to the Heckscher-Ohlin model, if the United States is richly endowed in human-capital relative to Mexico, then as NAFTA increasingly leads to more bilate
25、ral free trade between the two countries,(a)the United States will find its industrial base sucked into Mexico.(b)Mexico will find its relatively highly skilled workers drawn to the United States.(c)The wages of highly skilled U.S. workers will be drawn down to Mexican levels.(d)The wages of highly
26、skilled Mexican workers will rise to those in the United States.(e)The wages of highly skilled Mexican workers will fall to those in the United States.Answer: E22.Assume that only two countries, A and B, exist.Consider the following data:CountriesFactor EndowmentsABLabor Force4520Capital Stock1510If
27、 good S is capital intensive, then following the Heckscher-Ohlin Theory,(a)country A will export good S.(b)country B will export good S.(c)both countries will export good S.(d)trade will not occur between these two countries.(e)Insufficient information is given.Answer: B23.Continuing from Question #
28、22, if you are told that Country B is very much richer than Country A, then the correct answer is:(a)country A will export good S.(b)country B will export good S.(c)both countries will export good S.(d)trade will not occur between these two countries.(e)insufficient information is given.Answer: B24.
29、Continuing from Question #22, you are told that Country B is very much larger than country A. The correct answer is:(a)country A will export good S.(b)country B will export good S.(c)both countries will export good S.(d)trade will not occur between these two countries.(e)insufficient information is
30、given.Answer: B25.Continuing from Question #22, you are told that Country B has no minimum wage or child labor laws. Now the correct answer is:(a)country A will export good S.(b)country B will export good S.(c)both countries will export good S.(d)trade will not occur between these two countries.(e)I
31、nsufficient information is given.Answer: B26.Continuing from Question #22, you now are told that the labor unions representing the workers in each of the two respective countries are considering lobbying against the opening of international trade between these two countries. Note that workers income is derived solely from wages.(a)This would be a misguided decision from the viewpoint of the workers in both countries, since trade is
