{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

practicetest_iei3 - Name Class Date Practice Test...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: ________________________ Class: ___________________ Date: __________ ID: A 4 Practice Test International Economic Issues Chapter 3 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The Leontief paradox questioned the validity of the theory of: a. Comparative advantage b. Factor endowments c. Overlapping demands d. Absolute advantage ____ 2. Classical trade theory emphasized which of the following as an underlying explanation of the basis for trade? a. Productivities of labor inputs b. Tastes and preferences among nations c. Changes in technologies over time d. Quantities of economic resources ____ 3. Assume that Country A, in the absence of trade, finds itself relatively abundant in labor and relatively scarce in land. The factor endowment theory reasons that with free trade, the internal distribution of national income in Country A will change in favor of: a. Labor b. Land c. Both labor and land d. Neither labor nor land ____ 4. Assume the cost of transporting autos from Japan to Canada exceeds the pretrade price difference for autos between Japan and Canada. Trade in autos is: ____ 5. Eli Heckscher and Bertil Ohlin are associated with the theory of comparative advantage that stresses differences in: ____ 6. Hong Kong is relatively abundant in labor, while Canada is relatively abundant in capital. In both countries the production of shirts is relatively more labor intensive than the production of computers. According to the factor endowment theory, Hong Kong will have a(n): ____
Background image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}