Midterm1-462_SAMPLE

B scarce in land c a capital abundant country d a

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Unformatted text preview: land. (c) A capital-abundant country. (d) A labor-abundant country. 10. Ch4.33 c: According the Heckscher-Ohlin model, the opening of trade between the United States and the Rest of the World should cause the United States to export _______ and import _______. (a) Both goods; neither good. (b) Shoes; automobiles. (c) Automobiles; shoes. (d) Neither good; both goods. 11. Ch5.6 In the long-run, following the opening of trade, a labor-abundant country will: (a) Employ less labor than it did pre-trade. (b) Produce goods using a higher land to labor ratio than it did pre-trade. (c) Produce goods using a lower land to labor ratio than it did pre-trade. (d) Experience higher rents and wages. 12. Ch5.7 The opening of trade between a land-abundant country and a labor-abundant country should lead to: (a) Higher rents and wages in both countries. (b) Lower rents and wages in both countries. (c) Higher rents in the labor-abundant country and higher wages in the land-abundant country. (d) Lower rents...
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This note was uploaded on 02/15/2011 for the course FBE 462 at USC.

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