CHAPTER 3
abaSOURCES OF COMPARATIVE ADVANTAGE
MULTIPLE-CHOICE QUESTIONS
1. Which of the following suggests that a nation will export the commodity in the production of which a great deal of its relatively abundant and cheap factor is ud?
a. The Linder theory
b. The product life cycle theorybrainy
c. The MacDougall theory
d. The Heckscher-Ohlin theory
2. According to Staffan Linder, trade between two countries tends to be most pronounced when the countries:
a. Find their tastes and preferences to be quite harmonious
b. Experience economies of large-scale production over large output levels
c. Face dissimilar relative abundances of the factors of production
d. Find their per-capita income levels to be approximately the same
3. Which of the following is a long-run theory, emphasizing changes in the trading position of a nation over a number of years?
a. Theory of factor endowments
上海市市花b. Comparative advantage theory
c. Theory of the product cycle
d. Overlapping demand theory
4. The Leontief paradox questioned the validity of the theory of:
a. Comparative advantage
可口可乐广告曲b. Factor endowments
c. Overlapping demands
d. Absolute advantage
5. Which of the following would least likely apply to the product life cycle theory?
a. Calculators and computers
b. Coal and crude oil
c. Home movie cameras
d. Office machinery
syndrome 6. 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
7. Concerning the influence that transportation costs have on the location of industry, which of the following industries has generally attempted to locate production facilities clo to resource supplies?
a. Autos
b. Steel
c. Soft drinks
d. Valuable electronics goods
8. Assume that Country A, in the abnce of trade, finds itlf 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
越狱tbagd. Neither labor nor land
9. When considering the effects of transportation costs, the conclusions of our trade model must be modified. This is becau transportation costs result in:
a. Lower trade volume, higher import prices, smaller gains from trade
b. Lower trade volume, lower import prices, smaller gains from trade
c. Higher trade volume, higher import prices, smaller gains from trade
d. Higher trade volume, lower import prices, greater gains from trade
10. Most economists maintain that the major factor underlying wage stagnation in the United States in the 1990s has been:
a. Import competition
b. Technological change
c. Rising real value of the minimum wage
d. Increasing union membership
11. 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:
a. Impossible
b. Possible
安全度c. Highly profitable
d. Moderately profitable
12. Eli Heckscher and Bertil Ohlin are associated with the theory of comparative advantage that stress differences in:
a. Income levels among countries
b. Tastes and preferences among countries
c. Resource endowments among countries
viewpointd. Labor productivities among countries
13. 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):
a. Absolute advantage in the production of shirts and computers
b. Absolute advantage in the production of computers
c. Comparative advantage in the production of shirts
d. Comparative advantage in the production of computers
14. If Japane workers receive lower塔塔杨 wages in the production of autos than do American workers:
a. Japan will have a comparative advantage in the production of autos
b. Japan will have an absolute advantage in the production of autos
jacec. Production costs will be lower in Japan than in the U.S.
d. Production costs could be lower in the U.S. if American labor productivity is higher than the Japane
15. Which trade theory suggests that a newly produced good, once exported, could ultimately end up being imported as the technology is transferred to lower-cost nations?
a. Factor endowment theory
