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 ?

A. Theory of factor endowments
B. Theory of overlapping demands
C. Economies of scale theory
D. Product life cycle theory

The factor endowment theory was pioneered by ?

A. Adam smith
B. David ricardo
C. Wassily leontief
D. Eli heckscher and bertil ohlin

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 ?

Xa. 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 ?

A. Is less than the cost of transporting it between them
B. Is greater than the cost of transporting it between them equals the cost of transporting it between them
C. Equals the cost of transporting it between them
D. More information in needed to answer this

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

A. Technologically efficient relative to the rest of the world
B. Capital abundant relative to the rest of the world
C. Labor abundant relative to the rest of the world
D. All of the above

Wassily Leontief’s results can be interpreted as ?

A. Evidence against the ricardi an model
B. Evidence against the heckscher-ohl in model
C. Support for the ricardian model
D. Support for the heckcher ohlin model

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 ?

A. Tastes
B. Technology
C. Factor/resource
D. Opportunity cost

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

A. Ricardian theory of comparative advantage
B. Heckscher ohl in theory of comparative advantage
C. Linder theory of overlapping demand
D. All of the above

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

A. Calculate the capital and labor required to produce $1 million of u.s exports and imports
B. Calculate the labor productivity of america workers relative to foreign workers
C. Calculate the capital productivity of american capital relative to foreign capital
D. All of the above

By reducing the volume of trade transportation costs tend to ?

A. Stop the process of product price equalization and factor price equalization before they are complete:
B. Ensure that the process of product price equalization and factor price equalization are complete
C. Eliminate all of the feasible gains from international trade
D. Maximize all of the feasible gains from international trade