B. Product Y

C. Neither X nor Y

D. Both X and Y

A. Heckscher Ohl in theory of comparative advantage

B. Linder theory of overlapping demand all of the above

C. None of these

B. 1000

C. 500

D. 2-Jan

A. 3/4 Y

B. 1 Y

D. 1/2 Y

A. Absolute advantage

B. Physical advantage

D. Which way the wind blows

A. shift out in a parallel fashion

C. Become flatter

D. shift in a parallel fashion

A. Export DVDs

B. Export steel

C. Exports steel and DVDs

A. Adam Smith

B. Berti IOhlin

D. Eli Heckscher

A. neither country would want to trade

B. None of the above

D. A would likely import S from B

A. Of primary products as opposed to manufactured products

B. Paid for all goods exported by the home country

C. Received for all goods exported by the home country

A. Two DVDs

B. Four DVDs

D. Three DVDs

A. Wine

C. Both wine and beer

D. Neither wine nor beer

A. Different currencies are an obstacle to international trade

C. A countrys exports should always exceed its imports

D. Resources are more mobile internationally that are goods

A. Trade would depend on the use of different currencies

C. There would be no basis for gainful trade

D. Trade would depend on economies of large-scale production

A. Theory of mercantilism

C. Theory of comarative advantage

D. Theory of absolute advantage

A. Four tons of steel

C. Three tons of steel

D. Two tons of steel

A. Beer

B. Wine

C. Both products

A. The stimulus of additional investment spending as market open

B. Economies of large scale production as markets open

C. Additional competition made possible by the opening of markets

A. One ton of steel

B. One-half ton of steel

C. Two and one-half tons of steel

A. The labor theory of value

C. The fact that a country must lose from trade

D. All of the above

B. 1W = 1/3B

C. 1W = 1B

D. 1W = 2B

A. Are more productive than their large trading partners

B. Are less productive than their large trading partners

C. Have demand preferences and income levels lower than their large trading partners

A. Specializes partially in the production of its exports goods

B. Specializes completely in the production of its export good

D. Trade at Swedens marginal rate of transformation

B. below the production possibility frontier

C. above the production possibility frontier

D. cant tell without more information

A. Is the philosophy of free international trade?

C. Was praised by Adam Smith in the Wealth of Nations

D. Both (a) and (c)

A. 1W = 6B

B. 1W = 5B

C. 1W = 3B

A. None of the above

B. Neither country would want to trade

D. A would export X to B

A. constant opportunity costs

C. first increasing and then decreasing opportunity costs

D. decreasing opportunity costs

A. None of the above

B. relatively higher U.S labor productivity was associated with relatively higher U.K export ratios

C. Labor productivity ratios and export ratios were not associated with each other

A. South Korea should export steel and DVDs

C. Japan should export steel

D. Japan should export steel and DVDs

B. Beer

C. Both wine and beer

D. Neither wine nor beer

A. One ton of steel

B. One and one-half tons of steel

D. One-half ton of steel

A. Considerable trade will occur between countries with different levels of technology

B. Small countries could obtain of the gains from trade when trading with large countries

D. Countries will completely specialize in the production of export goods

B. shift in a parallel fashion

C. Shift out in a parallel fashion

D. become steeper

A. evidence against the classical model

C. Support for the Heckscher-Ohlin model

D. evidence against the Heckscher-Ohlin model

A. Product X

C. Neither X nor Y

D. Both X and Y

B. relative differences in labor productivity between countries

C. Both (a) and (b)

D. Neither (a) nor (b)

B. Mexico and Denmark

C. Sweden and Denmark

D. Sweden and Spain

A. There is no basis for gainful trade for either country

C. Only one country gains from trade

D. One country gain and the other country loses from trade

B. Exports equal imports

C. there is no trade

D. Production equals consumption

A. A would export X to B

B. None of the above

D. Neither country would want to trade

A. increasing opportunity costs

B. decreasing opportunity costs

C. first increasing and then decreasing opportunity costs

A. cant tell without more information

B. below the production possibility frontier

D. above the production possibility frontier

A. actual differences in labor productivity between countries

C. Both (a) and (b)

D. Neither (a) nor (b)

B. 2

C. 1000

D. 0

A. Only countries with high wages will import

B. Only countries with low wages will export

D. Countries with high wages will have higher prices