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.Management Sciences
Category: Sources of Comparative Advantage
Industrial policies intended to foster comparative advantage for domestic industries could result in the implementation of ?
A. research and development subsidies
B. loan guarantees
C. low interest rate loans
D. All of the above
Leontief’s result were considered paradoxical because the United Stated was believed to be ?
A. technologically efficient relative to the rest of the world
B. capital abundant relative to the rest of the world
C. labor abundant relative to the rest of the world
D. All of the above
The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?
A. factor endowments
B. factor intensities
C. technology
D. opportunity costs
Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A
Wassily Leontief used an input output table in order to test the ?
A. Ricardian theory of comparative advantage
B. Heckscher Ohl in theory of comparative advantage
C. Linder theory of overlapping demand
D. All of the above
According to the Heckscher-Ohlin model ?
A. everyone automatically gains from trade
B. The gainers from trade outnumber the losers from trade
C. The scarce factor necessarily gains from trade
D. None of the above
The factor endowment model of international trade was developed by ?
A. Adam Smith
B. David Ricardo
C. John Stuart Mill
D. Eli Heckscher and Bertil Ohlin
Wassily Leontief’s results can be interpreted as ?
A. evidence against the Ricardi an model
B. evidence against the Heckscher-Ohl in model
C. support for the Ricardian model
D. support for the Heckcher Ohlin model
The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?
A. Economies of large-scale production
B. Relative abundance of various resources
C. Relative costs of labor
D. Research and development expenditures
The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?
A. Stolpher-Samuelson theory
B. factor endowment theory
C. specific factors theory
D. overlapping demand theory
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