1/16/12

Chap e 4: Re o ce , Compa a i e Ad an age, and Income Di

ib ion

Your Results for: "Qui "

Site Title: International Economics: Theor and Polic Book Title: International Economics: Theor and Polic Book Author: Krugman and Obstfeld Location on Site: Student Resources > Chapter 4: Resources, Comparative Advantage, and Income Distribution > Qui Date/Time Januar 16, 2012 at 3:42 AM (UTC/GMT) Submitted:

Print this page

Summar of Results
100% Correct of 10 Score d ite m s:
10 C orre ct: 0 Incorre ct: 0% More inform ation about scoring 100%

1.

The change in income distribution from trade affects trade polic because Your Ans er: those who lose from trade are more politicall organi ed that those who gain from trade.

2.

Which of the following is NOT an assumption of the Heckscher-Ohlin model? Your Ans er: The suppl of factors of production grows over time.

3.

According to the Heckscher-Ohlin model, trade can not make a countr as a whole worse off because Your Ans er: the autark level of production and consumption is still available.

4.

A good is labor intensive in the Heckscher-Ohlin model if Your Ans er: it uses a relativel low land to labor ratio in production compared to that of another good.

5.

What is the main difference between the Heckscher-Ohlin model and the Ricardian model? Your Ans er: Unlike in the Ricardian model, endowments of factors of production affect trade patterns in the Heckscher-Ohlin model.

6.

If cloth production is labor intensive and food production is land intensive, what would be the result of a decrease in the price of food in the Heckscher-Ohlin model? Your Ans er: The real wage will rise in terms of both goods, and the real income of land owners will fall in terms of both goods.

7.

What does the Heckscher-Ohlin model predict about the pattern of trade? Your Ans er: Each countr speciali es in production of goods that use its abundant resource intensivel .

p .a .com/a _k gmnob f_in e econ_8/84/21576/5523554.c /inde .h ml

1/2

1/16/12

Chap e 4: Re o ce , Compa a i e Ad an age, and Income Di

ib ion

8.

According to the Heckscher-Ohlin model, how is income redistributed as a result of trade? Your Ans er: The owners of scarce factors of production lose, and the owners of abundant factors of production gain.

9.

The Heckscher-Ohlin model predicts that prices of factors of production equalize across countries. But we do not observe factor price equalization principally because: Your Ans er: there are differences in technology across countries that the Heckscher-Ohlin model ignores.

10.

The Leontief paradox states that: Your Ans er: US exports are less capital intensive than US imports.

E-mail Your Results

My nam e is (first last): E-m ail m y re sults to: E-mail address: Me Instructor TA O the r He lp Send as: Te x t Te x t Te x t Te x t E-m ail R e sults R yan Tonog

Copyright 1995 - 2010 Pearson Education . A ll rights reserved. Pearson A ddison Wesley is an imprint of Pearson . Legal Notice Privacy Policy Permissions

p .a .com/a _k gmnob f_in e econ_8/84/21576/5523554.c /inde .h ml

2/2