国际贸易习题.pdf

Page 1 Name Date 1 Suppose that you are trying to decide between being a factor that is mobile between sectors and one that is specific to a particular sector What are the relative benefits and costs to becoming specific 2 Suppose that land is specific to agriculture capital is specific to manufacturing and labor is mobile between sectors If you know that the nominal income of capital and labor has fallen then what can you say about the changes in the prices of manufactured goods and agricultural goods 3 Why is the specific factors model referred to as a short run version of the Heckscher Ohlin model 4 In what way do the conclusions of the Ricardian and the specific factors models differ A In the specific factors model all resources labor land capital are better off with free trade In the Ricardian model only labor is better off with free trade B In the Ricardian model a country is better off with free trade In the specific factors model some of a country s resources will be worse off with free trade C In the Ricardian model some of a country s resources will be worse off with free trade In the specific factors model some of a country s resources will be better off with free trade D In the Ricardian model labor will be worse off with free trade In the specific factors model labor will be better off with free trade 5 Suppose that world demand shifts away from agricultural goods toward high tech manufactured goods If land is specific to agriculture capital is specific to manufacturing and labor is mobile between sectors which of the following is true A The percentage change in capital income is less than the percentage change in labor income B The percentage change in labor income is greater than the percentage change in the relative price of manufacturing goods C The percentage change in capital income is greater than zero 6 According to the Stolper Samuelson theorem would you expect all workers across the globe to favor limiting trade Why or why not Page 2 Use the following to answer questions 7 20 Figure International Trade Equilibrium 7 Figure International Trade Equilibrium Which is the before trade point of production and consumption 8 Figure International Trade Equilibrium Which line shows the before trade relative price in this nation 9 Figure International Trade Equilibrium Which point shows the after trade point of consumption 10 Figure International Trade Equilibrium Which line shows the new equilibrium world price determined by trade 11 Figure International Trade Equilibrium Before trade how many units of wheat will this nation produce Page 3 12 Figure International Trade Equilibrium Before trade how many units of wheat will this nation consume 13 Figure International Trade Equilibrium Before trade how many units of cloth will this nation produce 14 Figure International Trade Equilibrium Before trade how many units of cloth will this nation consume 15 Figure International Trade Equilibrium Assume that the country specializes in the good in which it has comparative advantage After trade how many units of wheat will this nation produce 16 Figure International Trade Equilibrium After trade how many units of wheat will this nation consume 17 Figure International Trade Equilibrium Assume that the country specializes in the good in which it has comparative advantage After trade how many units of cloth will this nation produce 18 Figure International Trade Equilibrium After trade how many units of cloth will this nation consume 19 Figure International Trade Equilibrium How many units of wheat will this nation export or import 20 Figure International Trade Equilibrium How many units of cloth will this nation export or import Page 4 21 Suppose that land is specific to corn capital is specific to automobiles labor is mobile between sectors and payments are as follows Automobiles Sales revenue 200 payments to labor 100 payments to capital 100 Corn Sales revenue 100 payments to labor 40 payments to land 60 Holding the price of automobiles constant suppose the increase in the price of corn is 20 and the increase in the wage is 10 What is the impact of this on the income of land and the income of capital What has happened to the real income of land What has happened to the real income of capital What has happened to the real income of labor Use the following to answer question 22 Figure A Country s Before and After Trade Equilibria 22 Figure A Country s Before and After Trade Equilibria According to the figure provided how can you decide whether or not the nation has gained from trade and has a higher standard of living Page 5 Use the following to answer questions 23 26 SCENARIO CHILE AND THE UNITED STATES Chile and the United States use capital and labor to produce wheat and automobiles The United States is capital abundant and Chile is labor abundant Wheat production is more labor intensive than automobile production 23 Scenario Chile and the United States Which statement below is correct A The United States has more capital than Chile B The United States has less labor than Chile C The ratio of the United States total capital stock to its labor force is higher than the same ratio for Chile D The ratio of Chile s total capital stock to its labor force is higher than the same ratio for the United States 24 Scenario Chile and the United States Which statement below is correct A More capital is used in the production of automobiles than wheat B Less labor is used in the production of automobiles than wheat C The capital labor ratio used in the production of automobiles is higher than the capital labor ratio used in the production of wheat D The capital labor ratio used in the production of wheat is higher than the capital labor ratio used in the production of automobiles 25 Scenario Chile and the United States According to the Heckscher Ohlin model A Chilean workers should support U S Chile free trade B Chilean owners of capital should support U S Chile free trade C U S owners of capital should oppose U S Chile free trade D Both U S and Chilean owners of capital should oppose U S Chile free trade 26 Scenario Chile and the United States According to the Heckscher Ohlin model A The United States should export automobiles to Chile B The United States should export wheat to Chile C Chile should export automobiles to the United States D Chile should import wheat from the United States Page 6 27 Suppose that the price of shoes which are labor intensive has risen by 10 Then which of the following can you say for sure about Home A Home wages will rise by more than 10 B Home rental rates will rise by more than 10 C Home wages will rise by no more than 10 D Home rental rates will fall by at least 10 28 Suppose that the price of shoes which are labor intensive has risen by 5 Then which of the following can you say for sure about home A Home wages will rise by more than 5 B Home rental rates will rise by more than 5 C Home wages will rise by no more than 5 D Home rental rates will fall by no more than 5 Use the following to answer questions 29 30 SCENARIO FRANCE AND ITALY 1 France and Italy only trade with each other 2 each produces wine and bread 3 The production of bread is relatively capital intensive and the production of wine is relatively labor intensive 4 France is relatively abundant in capital and Italy is relatively abundant in labor 29 Scenario France and Italy According to the HO model free trade between Italy and France should cause A a decrease in the French price of wine and a decrease in the Italian price of wine B increases in the price of wine in Italy and in France C an increase in the French price of wine and an increase in the Italian price of bread D a decrease in the Italian price of bread and a decrease in the French price of wine 30 Scenario France and Italy According to the HO model free trade between France and Italy should result in A increased wages in both countries B decreased wages in both countries C increased wages in France and increased returns to capital in Italy D increased returns to capital in France and increased wages in Italy Page 7 31 As trade takes place imports will force firms to decrease price and production and lay off resources which will be absorbed by the other industry at a lower wage rental price The result is that A unfortunately neither industry can afford to hire laid off resources B the lower wage makes it possible for both industries to hire more of the resource and therefore the ratio of that resource to the other rises in both industries C the government usually provides assistance to workers laid off due to trade D the lower wage rental price means that consumers will not be able to purchase all the production and there will be a recession Use the following to answer question 32 Table Factor Use in Trade Exports Imports Capital million 3 55 5 Labor person years 192 160 Capital Labor person 32 Table Factor Use in Trade The information given in the table was for a country with abundant labor hence it violates the HO model A True B False Use the following to answer questions 33 37 Table Data on Suburbia Use this table which represents autarkic and free trade production and consumption and resource usage for Suburbia to answer the following question s Autarky Free Trade Production of good X 1 000 units 2 000 units Consumption of good X 1 000 units 1 000 units Capital used to produce good X 1 000 units 2 000 units Labor used to produce good X 1 000 days 1 250 days Production of good Y 1 000 units 500 units Consumption of good Y 1 000 units 2 000 units Capital used to produce good Y 1 500 units 1 000 units Labor used to produce good Y 500 days 250 days Page 8 33 Table Data on Suburbia Which statement below is correct A Surburbia is a labor intensive country B Suburbia is a labor abundant country C Suburbia is a capital intensive country D Suburbia is a capital abundant country 34 Table Data on Suburbia What is the ratio of total capital to total labor in Suburbia A 1 unit day B 1 5 units day C 1 67 units day D 3 units day 35 Table Data on Suburbia How many units of which product will Suburbia import A 2 000 units of X B 1 000 units of X C 2 000 units of Y D 1 500 units of Y 36 Table Data on Suburbia Did the capital labor ratio used in the production of good X rise fall or remain unchanged as Suburbia moved from autarky to free trade A rise B fall C remain unchanged D cannot determine from the information given in the table 37 Table Data on Suburbia Which statement is true concerning the change in the marginal product of labor as Suburbia moved from autarky to a free trade situation A The MPL in good X production rose B The MPL in good Y production fell C The MPL in good X and good Y production both rose D The MPL in good X and good Y production both fell Page 9 Use the following to answer questions 38 39 Table Capital Intensity Across Industries U S Capital Labor Ratios in Selected Industries Industry K L worker Apparel and other textile products 8 274 Leather an