Final_Practice__Ch7

Final_Practice__Ch7 - Chapter 7 International Factor...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 International Factor Movements Multiple Choice Questions 1. Which of the following differs in its essential analytical framework? (a) International trade in goods (b) International conflict resolution (c) International trade in services (d) International trade in factors of production (e) International borrowing and lending Answer: B 2. International free labor mobility will under all circumstances (a) increase total world output. (b) improve the economic welfare of everyone. (c) improve the economic welfare of workers everywhere. (d) improve the economic welfare of landlords (or capital owners) everywhere. (e) None of the above. Answer: E 3. If the world attained a perfect Heckscher-Ohlin model equilibrium with trade, then (a) workers in the labor abundant country would migrate to the capital abundant country. (b) workers in the labor abundant country would wish to migrate to the capital abundant country. (c) workers in the labor abundant country would have no desire to migrate to the capital abundant country. (d) workers in the capital abundant country would wish to migrate to the labor abundant country. (e) workers in the capital abundant country would migrate to the labor abundant country. Answer: C
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4. International borrowing and lending may be interpreted as one form of (a) intermediate trade. (b) inter-temporal trade. (c) trade in services. (d) unrequited international transfers. (e) None of the above. Answer: B 5. The relative price of future consumption is (a) the interest rate. (b) unknown at any given time. (c) the real interest rate. (d) the relative interest rate. (e) None of the above. Answer: C 6. A country that has a comparative advantage in future production of consumption goods (a) will tend to be an international borrower. (b) will tend to have low real interest rates. (c) will tend to be an international investor or lender. (d) will tend to have good work ethics. (e) None of the above. Answer: A
Background image of page 2
7. Why a good is produced in two different countries is known as the question of (a) internalization. (b) vertical integration. (c) exploitation. (d) location. (e) None of the above.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/13/2011 for the course ECON 231 taught by Professor Rus during the Spring '08 term at Waterloo.

Page1 / 10

Final_Practice__Ch7 - Chapter 7 International Factor...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online