ECON 327 Final wsu questions with answers

ECON 327 Final wsu questions with \| \| \| \| \| \|




answers


The predictive power of the Heckscher-Ohlin model, at least in terms of
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forecasting the volume of trade, appears to undergo improvement upon
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abandonment of the assumption - CORRECT ANSWERS ✔✔that \| \| \| \| \| \| \| \|




technologies are the same across countries. \| \| \| \| \|




As more labor is used, holding capital constant, - CORRECT ANSWERS
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✔✔the marginal product of labor decreases
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The nature of political battles over trade in the modern era - CORRECT
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ANSWERS ✔✔typically centers on issues involving the trade-induced
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devaluation of labor skills \| \| \|




According to the factor proportions model, a consequence of international
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trade is that factor prices across trading nations - CORRECT ANSWERS
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✔✔become completely equalized. \| \|




Suppose Home and Foreign only differ in their resources: Home has a higher
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ratio of labor to land than Foreign does. According to the factor proportions
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model, factor prices will become equalized because - CORRECT ANSWERS
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✔✔Home indirectly exports its labor and Foreign indirectly exports its land.
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, Home and Foreign produce two goods, flowers and soybeans. Home exports
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the labor intensive flowers and Foreign exports the land intensive soybeans.
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Suppose that Home provides an export subsidy to its domestic flower
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producers. The provision of an export subsidy to flower producers by Home
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will cause - CORRECT ANSWERS ✔✔an improvement in Foreign's terms of
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trade.



The provision of the export subsidy by Home on flowers, in the absence of
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Metzler's paradox, will have which of the following income distribution
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effects? - CORRECT ANSWERS ✔✔It worsens Home's terms of trade but aids
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its exporting sector as the internal relative price of flowers declines.
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In the multi-good, single-factor Ricardian model the equilibrium relative
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wage of Home's workers is determined by the - CORRECT ANSWERS
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✔✔relative demand and relative supply of labor.re \| \| \| \| \| \|




The relative demand for labor function is shaped as - CORRECT ANSWERS
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✔✔a step function.
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In the "2 by 2 by 2" version of the factor-proportions model, assume that
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Home is labor-abundant and coal is labor-intensive. The movement from no-
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trade to free-trade between Home and Foreign can be expected to cause the
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relative price of coal to - CORRECT ANSWERS ✔✔increase in Home
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Suppose that the Home government is somewhat beholden to landowners.
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Which of the following adjectives might describe the Home government's
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stance toward the opening of trade? - CORRECT ANSWERS ✔✔resistant
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