A. U.S exports are capital intensive relative to U.S imports
B. U.S imports are labor intensive relative to U.S exports
C. U.S exports are neither labor nor capital intensive
D. None of the above
Related Mcqs:
- In his empirical tests, Wassily Leontief used an input-output table to ?
A. calculate the capital and labor required to produce $1 million of U.S exports and imports
B. calculate the labor productivity of America workers relative to foreign workers
C. calculate the capital productivity of American capital relative to foreign capital
D. All of the above - 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 - 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 comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?
A. Adam Smith
B. David Ricardo
C. David Smith
D. Adam Ricardo - 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-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 Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
A. tastes
B. technology
C. factor/resource
D. opportunity cost - 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 - 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 - By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?
A. The prices of trade goods to be lower than when there are no transportation costs
B. specialization to stop when the production costs of the trading partners equalize
C. The volume of trade to be less than when there are no transportation costs
D. The gains from trade to be greater than when there are no transportation costs
