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Questions and Answers
What does the supply curve represent?
What does the supply curve represent?
- The relationship between price and production costs
- The relationship between price and quantity demanded
- The relationship between quantity supplied and quantity demanded
- The relationship between price and quantity supplied, with all other factors affecting supply held constant (correct)
What causes a shift in the supply curve?
What causes a shift in the supply curve?
- A change in the production possibility frontier
- A change in a nonprice determinant of supply (correct)
- A change in quantity demanded
- A change in price
Which of the following models is a special case of the standard trade model?
Which of the following models is a special case of the standard trade model?
- The Ricardian model
- The Ronald Jones and Paul Samuelson specific factors model
- The Heckscher-Ohlin (H-O) model
- All of the above (correct)
What is the assumption about a country's production possibility frontier (PPF) in the standard trade model?
What is the assumption about a country's production possibility frontier (PPF) in the standard trade model?
What does the production possibility frontier (PPF) determine in the standard trade model?
What does the production possibility frontier (PPF) determine in the standard trade model?
According to Figure 4.1, what factors cause differences in a country's production possibility frontier (PPF)?
According to Figure 4.1, what factors cause differences in a country's production possibility frontier (PPF)?
What is the relationship between net exports, total exports, and total imports?
What is the relationship between net exports, total exports, and total imports?
What does the law of diminishing marginal returns predict?
What does the law of diminishing marginal returns predict?
What determines whether a country produces more manufactured products or food products?
What determines whether a country produces more manufactured products or food products?
What defines market equilibrium in a market economy?
What defines market equilibrium in a market economy?
What happens to prices when global demand rises?
What happens to prices when global demand rises?
What happens to the marginal productivity of the manufactured sector when capital increases, ceteris paribus?
What happens to the marginal productivity of the manufactured sector when capital increases, ceteris paribus?
What happens to the production of a good if a country does not trade?
What happens to the production of a good if a country does not trade?
In real economies, is equilibrium often reached?
In real economies, is equilibrium often reached?
What factor influences the level of prices in relation to global demand?
What factor influences the level of prices in relation to global demand?
What did the H-O theory predict about the U.S. exports based on its capital abundance?
What did the H-O theory predict about the U.S. exports based on its capital abundance?
If two countries decide to trade with each other, what happens to the global economy?
If two countries decide to trade with each other, what happens to the global economy?
What was the first hint that the U.S. participation in international trade did not align with the H-O theory?
What was the first hint that the U.S. participation in international trade did not align with the H-O theory?
In which sector are the gains from trade larger for a country?
In which sector are the gains from trade larger for a country?
What did Wassily W. Leontief study in 1953 to test the H-O theory?
What did Wassily W. Leontief study in 1953 to test the H-O theory?
Which factor did Leontief reveal about the U.S. participation in international trade that went against the H-O theory?
Which factor did Leontief reveal about the U.S. participation in international trade that went against the H-O theory?
Why did Leontief conclude that the U.S. was specialized in labor-intensive rather than capital-intensive goods?
Why did Leontief conclude that the U.S. was specialized in labor-intensive rather than capital-intensive goods?
What distinguished Leontief's findings from the predictions of the H-O theory regarding U.S. trade?
What distinguished Leontief's findings from the predictions of the H-O theory regarding U.S. trade?
What was the name given to the analysis conducted by Wassily Leontief?
What was the name given to the analysis conducted by Wassily Leontief?
What was the reason behind the United States exporting labor-intensive goods?
What was the reason behind the United States exporting labor-intensive goods?
What does the term 'paradox' refer to in the context of the Leontief Paradox?
What does the term 'paradox' refer to in the context of the Leontief Paradox?
What does the text imply about the ability of a single theory to explain international trade?
What does the text imply about the ability of a single theory to explain international trade?
Which of the following institutions has done a comprehensive account of the Leontief Paradox?
Which of the following institutions has done a comprehensive account of the Leontief Paradox?
Which of the following individuals received the Nobel Prize in Economics for their contributions related to Wassily Leontief's work?
Which of the following individuals received the Nobel Prize in Economics for their contributions related to Wassily Leontief's work?
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