MultiplechoiceCh7

MultiplechoiceCh7 - E. workers in the capital abundant...

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Chapter 7: International Factor Movements Multiple Choice Questions 1. 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 2. 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.
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Unformatted text preview: E. workers in the capital abundant country would migrate to the labor abundant country. Answer: C 3. International labor mobility A. leads to wage convergence by raising wages in destination country and lowering in source country. B. is in accordance with the specific factors model C. is in accordance with the Heckscher-Ohlin factor proportions model. D. leads to wage convergence by raising wages in source and lowering them in destination country. E. is in accordance with scale economy model. Answer: D 4. In a typical short-run production function, as labor increases A. the marginal product of capital decreases. B. the overall product of labor decreases. C. the average product of labor decreases. D. the marginal product of labor decreases. 82 E. None of the above. Answer: D 83...
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MultiplechoiceCh7 - E. workers in the capital abundant...

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