国际经济学练习题：ch04

1、International Economics, 8e (Krugman) 17Chapter 4 Resources, Comparative Advantage, and Income Distribution4.1 A Model of a Two-Factor Economy1) 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 possi

2、bility 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 t

3、he capital-intensive product. E) None of the above. Answer: D Question Status: Previous Edition2) 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. Ans

4、wer: D Question Status: Previous Edition3) 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 endowments B) scale economies C) factor of production intensities D) techno

5、logy E) opportunity costs Answer: D Question Status: Previous Edition4) The slope of a country's PPF reflects A) the opportunity cost of product S in terms of product T. B) the opportunity cost of T in terms of money prices. C) the opportunity cost of S or T in terms of S. D) Both A and B. E) Bo

6、th A and C. Answer: A Question Status: Previous Edition5) The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former A) has only two countries. B) has only two products. C) has two factors of production. D) has two production possibility frontiers (one for

7、 each country). E) None of the above. Answer: C Question Status: Previous Edition 6) "A good cannot be both land- and labor-intensive." Discuss. Answer: In a two good, two factor model, such as the original Heckscher-Ohlin framework, the factor intensities are relative intensities. Hence,

8、the relevant statistic is either workers per acre (or acres per worker); or wage per rental unit (or rental per wage). In order to illustrate the logic of the statement above, let us assume that the production of a broom requires 4 workers and 1 acre. Also, let us assume that the production of one b

9、ushel of wheat requires 40 workers and 80 acres. In this case the acres per person required to produce a broom is one quarter, whereas to produce a bushel of wheat requires 2 acres per person. The wheat is therefore (relatively) land intensive, and the broom is (relatively) labor intensive. Question

10、 Status: Previous Edition7) "No country is abundant in everything." Discuss. Answer: The concept of relative (country) factor abundance is (like factor intensities) a relative concept. When we identify a country as being capital intensive, we mean that it has more capital per worker than d

11、oes the other country. If one country has more capital worker than another, it is an arithmetic impossibility that it also has more workers per unit capital. Question Status: Previous Edition 8) Refer to above figure. Can you guess which group of producers in Country P might lobby against free trade

12、? Answer: In Country P, the owners of the relatively scarce factor of production are the owners of capital. Their relative and real incomes will decrease, and so they may well attempt to lobby for protectionism, which may prevent the country from moving to a free trade equilibrium. Question Status:

13、Previous Edition An Economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depends on labor input as follows: 9) Refer to the table above. (a)Graph the production functions

14、for good 1 and good 2(b)Graph the production possibility frontier. Why is it curved? Answer: The production possibility frontier is curved because of the diminishing returns associated with the expansion of output in the short run in each of the two industries. Question Status: Previous Edition10) R

15、efer to the table above. Calculate the marginal product of labor for each product, for different labor inputs. Answer: e.g. at 50 workers, the marginal product for 1 is 0.75For product 2 it is 0.65 At 90 workers, the marginal product for 1 is 0.25For product 2 it is 0.15 Question Status: Previous Ed

16、ition4.2 Effects of International Trade Between Two-Factor Economies1) In the 2-factor, 2 good Heckscher-Ohlin model, 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) th

17、e relatively inelastic factor of production. E) the factor of production with the largest elasticity of substitution. Answer: B Question Status: Previous Edition2) According to the Heckscher-Ohlin model, the source of comparative advantage is a country's A) technology. B) advertising. C) human c

18、apital. D) factor endowments. E) Both A and B. Answer: D Question Status: Previous Edition 3) 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 relatively abundant. A) t

19、astes B) technology C) factor of production D) opportunity cost E) scale economy Answer: C Question Status: Previous Edition4) 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 los

20、ers and still retain gains. D) a country gains if its exports have a high value added. E) None of the above. Answer: C Question Status: Previous Edition5) As opposed to the Ricardian model of comparative advantage, the assumption of diminishing returns in the Heckscher-Ohlin model means that the pro

21、bability 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 production possibility frontier. D) comparative advantage is primarily supply related. E) None of the above.

22、 Answer: A Question Status: Previous Edition6) 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) Differences in technologies could be the source of gains from trade. C) Some groups may gain and some may los

23、e 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: B Question Status: Previous Edition7) If tastes differed between countries, this could affect A) wage equalization due to trade with no specialization. B) the direction

24、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: B Question Status: Previous Edition Assume that only two countries, A and B, exist. 8) Refer to

25、the table above. If 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: B Que

26、stion Status: Previous Edition9) Refer to the table above. 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 c

27、ountries. E) Insufficient information is given. Answer: B Question Status: Previous Edition10) Refer to the table above. 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 expo

28、rt good S. D) trade will not occur between these two countries. E) Insufficient information is given. Answer: B Question Status: Previous Edition11) Refer to the table above. 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

29、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: B Question Status: Previous Edition12) The following are all assumptions that must be accepted in order to apply the Heckscher-

30、Ohlin Theory, except for one A) Countries differ in their endowments of factors of production. B) Countries differ in their technologies. C) There are two factors of production. D) Production is subject to constant returns to scale. E) One product always requires more machines per worker in its prod

31、uction than does the other product. Answer: B Question Status: Previous Edition 13) In international-trade equilibrium in the Heckscher-Ohlin model, A) the capital rich country will charge less for the capital intensive good than the price paid by the capital poor country for the capital-intensive g

32、ood. B) the capital rich country will charge the same price for the capital intensive good as that paid for it by the capital poor country. C) the capital rich country will charge more for the capital intensive good than the price paid by the capital poor country for the capital-intensive good. D) t

33、he workers in the capital rich country will earn more than those in the poor country. E) the workers in the capital rich country will earn less than those in the poor country. Answer: B Question Status: Previous Edition14) If two countries were very different in their relative factor availabilities,

34、 then we would not expect which of the following to be empirically supported? A) The Heckscher-Ohlin Theorem B) The Factor Price Equalization Theorem C) The Law of One Price D) The Law of Demand E) None of the above. Answer: B Question Status: Previous Edition15) The minimum information required to

35、determine Country A's comparative advantage is A) the number of hours of labor in the economy of A. B) ratio of labor inputs for products S and T in A. C) total available labor, labor required per unit of S, and labor required per unit of T in A. D) total available labor and the ratio of labor i

36、nputs for S and T in A. E) None of the above. Answer: E Question Status: Previous Edition16) The Heckscher-Ohlin model predicts all of the following except A) which country will export which product. B) which factor of production within each country will gain from trade. C) the volume of trade. D) t

37、hat wages will tend to become equal in both trading countries. E) None of the above. Answer: C Question Status: Previous Edition17) If Australia has relatively more land per worker, and Belgium has relatively more capital per worker, then if trade were to open up between these two countries, A) the

38、relative price of the capital-intensive product would rise in Australia. B) the world price of the land-intensive product would be higher than it had been in Belgium. C) the world price of the land intensive product would be higher than it had been in Australia. D) the relative price of the land int

39、ensive product would rise in Belgium. E) None of the above. Answer: C Question Status: Previous Edition 18) If Australia has more land per worker, and Belgium has more capital per worker, then if trade were to open up between these two countries, A) the real income of capital owners in Australia wou

40、ld rise. B) the real income of labor in Australia would clearly rise. C) the real income of labor in Belgium would clearly rise. D) the real income of landowners in Belgium would fall. E) the real incomes of capital owners in both countries would rise. Answer: D Question Status: Previous Edition19)

41、If Japan is relatively capital rich and the United States is relatively land rich, and if food is relatively land intense then trade between these two, formerly autarkic countries will A) lead to perfect specialization with Japan alone producing manufactures. B) create a world relative price of food

42、 that is lower than that of the U.S. C) lower the price of food in both countries. D) raise the price of food in both countries. E) None of the above. Answer: E Question Status: Previous Edition20) The reason trade clearly benefits a country is that A) it raises the real income of the more productiv

43、e elements in society. B) it lowers the real income of the less productive elements in society. C) it increases the levels of consumption of everyone. D) it increases society's consumption choices. E) None of the above. Answer: D Question Status: Previous Edition21) If Gambinia has many workers

44、but very little land and even less productive capital, then, following the specific factor model, we know that Gambinia has a comparative advantage in A) manufactures. B) food. C) both manufactures and food. D) neither manufactures nor food. E) Not enough information given. Answer: E Question Status

45、: Previous Edition22) If, relative to its trade partners, Gambinia has many workers but very little land and even less productive capital, then, following the specific factor model, in order to help the country's economic welfare, the Gambinian government should A) protect the manufacturing sect

46、or. B) protect the agricultural sector. C) protect both sectors. D) not resort to protectionism. E) None of the above. Answer: D Question Status: Previous Edition 23) International trade leads to complete equalization of factor prices. Discuss. Answer: This statement is typically "true . . . bu

47、t." Under a strict and limited set of assumptions, such as the original Heckscher-Ohlin model which excludes country specific technologies; non- homothetic tastes; factor intensity reversals; large country differences in (relative) factor abundances, more factors than goods, and an equilibrium

48、solution within the "cone of specialization" then it may be demonstrated that internal consistency demands that the above stated sentence is "true." However, the minute one relaxes any of the above listed assumptions one may easily identify solutions, which contradict the factor

49、price equalization theorem. Question Status: Previous Edition24) Why is the H.O. model called the factor-proportions theory? Answer: The H.O. model explores the nature and the limitations of assuming that the sole determinant of comparative advantage is inter-country differences in (relative) factor

50、 proportions. Question Status: Previous Edition 25) Refer to above figure. Two countries exist in this model, P and R. P is relatively labor (L) abundant, as is evident in the bottom right horizontal axis. If Country P were to be completely specialized in the labor-intensive product, C, it would be

51、producing at point 4. In fact, it produces both C and P, at point 5. The (autarky) relative price of C (in terms of F) of Country P is at point 3; and of Country R at point If trade were to open up between these two countries, which would export C and which would export F? Is this consistent with th

52、e Heckscher-Ohlin model? Explain. Answer: Country R would export F. This is consistent with the H-O model. The country which is relatively capital abundant exports the product which is relatively capital intensive. Question Status: Previous Edition26) Refer to above figure. If trade were to open up

53、between P and R, where would the world terms of trade locate in the figure above (somewhere on the PC/PF axis)? Would relative wages (w/r) in the two countries become equal? Is this consistent with the Heckscher-Ohlin model? Explain. Answer: The terms of trade would settle somewhere between the two

54、autarky relative prices on the PC/PF axis. The relative wages (w/r) will be lower than the highest and higher than the lowest on the vertical axis above, but will not coincide. This last result is in contradiction to the factor price equalization expectation we have from the model. Question Status: Previous Edition 27) Refer to above figure. Would you expect to find that the real wages become equalized in both countries? Explain the reason for any differences you note. Answer: We would expect that one single (relative wage will be established for both countries. This happens beca