Foundations Of Modern Trade Theory

A. shift out in a parallel fashion
B. shift in a parallel fashion
C. Become steeper
D. Become flatter

A. 2
B. 1/2
C. 00
D. 1000

A. Wine
B. Beer
C. Both wine and beer
D. Neither wine nor beer

A. 1W = 1B
B. 1W = 2B
C. 1W = 3B
D. 1W = 1/3B

A. 1/2 Y
B. 3/4 Y
C. 1 Y
D. 4/3 Y

A. A would export X to B
B. B would import Y from A
C. Neither country would want to trade
D. None of the above

A. Product X
B. Product Y
C. Neither X nor Y
D. Both X and Y

A. actual differences in labor production between countries
B. relative differences in labor productivity between countries
C. Both (a) and (b)
D. Neither (a) nor (b)

A. Only countries with low wages will export
B. Only countries with high wages will import
C. Countries with high wages will have higher prices
D. All of the above are false

A. Countries will completely specialize in the production of export goods
B. Considerable trade will occur between countries with different levels of technology
C. Small countries could obtain of the gains from trade when trading with large countries
D. All of the above