15 Better technology in one country results in: B A) differences in demand.

B) relatively higher resource productivity which can create a comparative advantage. C) more imports than in other countries.

D) a country being more self-sufficient and less likely to engage in trade.

16 ____________________ says that a country exports products that use relatively abundant resources intensively and imports products that use relatively scarce resources intensively. A A) Heckscher-Ohlin Theory

B) Ricardo's principle of comparative advantage C) Smith's theory of absolute advantage D) A production possibilities curve

17 A higher ratio of labor to other factors than is present in other countries indicates that a country is ______________. A A) labor-abundant. B) labor-intensive. C) labor-resistant. D) labor-efficient.

18 Where labor costs are a greater share of product costs than other factors, the products are considered to be ______________. B A) labor-efficient. B) labor-intensive.

C) labor-disadvantaged. D) labor-abundant.

19 Trade allows consumption: D

A) that coincides with domestic supply. B) to be maintained at a consistent level. C) without increasing imports.

D) outside of the country's production possibilities curve.

20 Trade allows a country to: A

A) reach a higher community indifference curve indicating a higher level of national well-being.

B) dictate the prices at which it will sell domestically-produced products in foreign markets. C) dictate the prices at which it will buy foreign products that compete with domestic products. D) standardize the individual indifference curves within the country.

第五章

1 In each country, international trade divides society into those who gain from trade and those who lose from trade because: B

A) trade is a zero sum activity, and if someone gains, someone must lose.

B) changes in product prices caused by trade will increase rewards to the suppliers of some factors and decrease rewards to suppliers of other factors.

C) those who own the factors of production gain and those who can only offer their work lose. D) those who import products have better opportunity to make money than those who export products.

2 In the short run, the income and returns that factors of production earn: A A) depend on the products they are employed to produce.

B) are immediately and directly affected by trade so that government intervention in trade is often necessary.

C) depend solely on how much of the factors are used to produce the products and the costs of those factors.

D) are not affected by trade at all since the factors are committed and their uses cannot be changed.

3 In the long run, factors of production: C

A) are tied to what they are employed to produce.

B) are affected in a manner that is inverse to the effect of trade on the products that those factors are used to produce.

C) can move between products in response to differences in returns.

D) are not important in determining the profits that firms can earn since the costs of factors are fixed.

4 Under certain conditions, the factor-price equalization theorem predicts that free trade will tend to equalize a factor's rate of pay in: D

A) only those countries where the demand for the factor is great.

B) only those countries where the factor is available in sufficient quantities. C) all counties, only if the factor itself is free to move between countries.

D) all countries, even if the factor itself is not free to move between countries.

5 According to the Heckscher-Ohlin model and its implications, trade makes some people absolutely better off and: A

A) other people absolutely worse off in each country in the world.

B) other people only marginally worse off since trade is a positive sum activity. C) leaves everyone else unaffected. D) others relatively better off.

6 The ____________________ says that, given certain conditions and assumptions, an event that changes a product price in a country raises the real rate of return on factors used intensively in rising-price industries and lowers the real rate of return on factors used intensively in falling-price industries. A

A) Stolper-Samuelson Theorem

B) Factor Price Equalization Theorem C) Theory of Comparative Advantage D) Heckscher-Ohlin Theorem

7 The more a factor is specialized or concentrated in the production of a product whose relative price is rising, the more: B

A) risk there is that the factor will be depleted.

B) that factor stands to gain from the change in product price.

C) likely it is that the supply of that factor will be artificially controlled. D) danger there is that producers will find substitutes for that factor.

8 The ____________________ says that free trade that equalizes the prices of products also equalizes the prices of the factors used to produce those products. D A) Stolper-Samuelson Theorem

B) Principle of Comparative Advantage C) Heckscher-Ohlin Theorem D) Factor Equalization Theorem

9 The factor-price equilibrium theorem says that laborers will eventually earn: D

A) less in importing countries than in exporting countries because the workers cannot move between countries.

B) the same wage rate only if labor migration is freely allowed and trade increases. C) more in exporting countries than in importing countries if labor is free to move.

D) the same wage rate in all countries, even if labor migration between countries is not allowed.

10 Physical capital and highly skilled labor are relatively abundant in: C A) developing countries. B) third-world countries. C) industrialized countries. D) exporting countries.

11 Almost 2/3 of proven oil and natural gas resources are located in: B A) off-shore fields.

B) Middle Eastern countries. C) Alaska. D) Russia.

12 International trade patterns: A

A) are broadly consistent with the Heckscher-Ohlin theory that predicts that countries tend to export products that use their abundant factors intensively.

B) are inconsistent with the Heckscher-Ohlin theory because of the difference in the economic sizes of nations.

C) are difficult to determine since each country uses a different monetary system.

D) depend on whether we consider the import side of trade or the export side of trade.

13 Japan would be a much poorer country without trade, because: A A) it has scarce arable land and natural resources.

B) it has low-skilled workers and minimal capital resources. C) other countries are much stronger economically. D) other countries are much weaker economically.

14 Labor costs account for a greater share of the value of U.S.: D

A) imports than of U.S. exports, because skill and pay are higher on the import side. B) imports than of U.S. domestic production. C) exports than of U.S. domestic production.

D) exports than of U.S. imports, because skill and pay are higher on the export side of U.S. trade.

15 Reducing U.S. imports tends to: B A) increase U.S. exports. B) reduce U.S. exports. C) not affect U.S. exports.

D) decrease U.S. domestic production.

16 The proposition that says trade equalizes the price of a factor in all countries is clearly wrong because: B

A) factors of production cannot move from country to country.

B) the same labor skill does not earn the same wage rate in all countries. C) not all countries have workers with the same level of skills.

D) some countries impose wage rate controls that result in unequal wages among countries.

17 Supply and demand conditions differ between countries because: C A) some countries import more than they export.

B) some countries produce more domestically than they import.

C) production conditions and consumer tastes differ from country to country. D) some countries export more than they import.

18 In a country importing a good, consumption of that good: A A) increases, and production of that good decreases. B) increases, and production of that good increases.

C) is difficult to predict, and production of that good decreases. D) decreases, and production of that good increases.

19 In a country exporting a good, production of that good: B A) increases, but the consumption of that good decreases.

B) increases, but the effect on consumption is difficult to predict. C) increases, and the consumption of that good increases.