hw3 - Spring2011ECON4633001: DueDate:Mar.14,2011...

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International Trade Spring 2011 ECON4633-001: Due Date: Mar. 14, 2011 Assignment 3 Name: __________________________ Date: _____________ Part I 1. A long-run model of trade basic to the determination of how mobile factors of production affect national welfare and the returns to the factors is known as: A) the specific-factors model. B) the Ricardian model. C) the Chicago model of trade. D) the Heckscher-Ohlin model. 2. The Hecksher-Ohlin model of international trade uses _____ and ______ to explain trade patterns. A) comparative; absolute advantage B) factor abundance; factor intensity C) factor availability; factor usability D) tariffs; quotas 3. The Heckscher-Ohlin model simplifies the analysis by assuming: A) There is unemployment of workers in the home country. B) There are a variety of levels of workers and types of capital. C) Land is an important factor of production. D) There are only two nations, with two possible goods and two factors of production. 4. In a capital-intensive industry, the capital/labor ratio will: A) rise as the wage/rental ratio falls. B) fall as the wage/rental ratio falls. C) rise as the country's capital stock rises. D) fall as the country's capital stock falls. Page 1
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5. The Heckscher-Ohlin model assumes that factors of production can move freely ______ but cannot move _______. A) domestically; internationally B) after they are fully trained; before the training period is over C) internationally; domestically D) within unskilled occupations; into high-skill jobs 6. Which of the following industries is considered to be the most capital intensive? A)
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This note was uploaded on 04/18/2011 for the course ECON 4633 taught by Professor Jingpinggu during the Spring '11 term at Arkansas.

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hw3 - Spring2011ECON4633001: DueDate:Mar.14,2011...

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