Economics Mcqs — Test 74

Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product ?

The factor endowment theory was pioneered by ?

Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

A product will be traded only if the pre-trade price difference between the two countries ?

Leontief’s result were considered paradoxical because the United Stated was believed to be ?

Wassily Leontief’s results can be interpreted as ?

The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?

Wassily Leontief used an input output table in order to test the ?

In his empirical tests, Wassily Leontief used an input-output table to ?

By reducing the volume of trade transportation costs tend to ?