Module 1 Quiz SS443 OL5 International Economics Spring 2020

AACN Essential Paper
February 18, 2020
Personal Mission Statement
February 18, 2020
  • Question 1

Needs Grading

Describe Alan Blinder’s Offshorability index mentioned in the article “How Many US Jobs Might be Offshorable?”How does Blinder separate jobs into offshorable and non-offshorable categories? Do you agree with this categorization?
Selected Answer: Alan Blinder’s Offshorable index is tells the number of jobs that are in US that can be performed abroad in a similar way. According to ALan Blinder, 25% of the jobs in US are offshorable. He categorizes the jobs into three; i.e. highly offshorable, offshorable, non-offshorable and highly non-offsjorable.  I do agree with high categorization which I believe is mostly brought by the different cultures and way of living among different people globally.  Correct Answer: [None] Response Feedback: [None Given]
  • Question 2

5 out of 5 points

A rough measure of the degree of economic interdependence of a nation is given by:
Selected Answer: C.  the ratio of a nation’s imports and exports to its GDP Answers: A.  the size of the nations’ population B.  the ratio of its population to its GDP C.  the ratio of a nation’s imports and exports to its GDP D.  all of the above
  • Question 3

5 out of 5 points

The school of thought during the seventeenth and eighteenth centuries proposing that the way for a nation to become richer was to restrict imports and stimulate exports was :
Selected Answer: A.  Mercantilist Answers: A.  Mercantilist B.  Classical School C.  Laissez Faire D.  Opportunity cost
  • Question 4

5 out of 5 points

Which of these economists considered absolute advantage in production to be the basis for trade between nations?
Selected Answer: A.  Adam Smith Answers: A.  Adam Smith B.  Alfred Marshall C.  David Ricardo D.  David Hume
  • Question 5

5 out of 5 points

According to the following table, if the US trades 9 bushels of wheat to the UK for 9 yards of cloth, the US gains from trade will equal:   U.S. U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 5 4  
Selected Answer: C.  4 yards of cloth Answers: A.  4 bushels of wheat B.  3 yards of cloth C.  4 yards of cloth D.  5 bushels of wheat
  • Question 6

5 out of 5 points

According to the following table, if the US trades 9 bushels of wheat to the UK for 8 yards of cloth, the UK gains from trade equal:   U.S. U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 5 4  
Selected Answer: C.  4 yards of cloth Answers: A.  4 bushels of wheat B.  3 yards of cloth C.  4 yards of cloth D.  5 bushels of wheat Answer Feedback: 9 Wheat = 5 Cloth in the US and 3 Wheat = 4 Cloth in UK If US gives UK 9 wheat and in return receives 8 yards of cloth,  UK is better off by 3 yards of cloth because to make 9 wheat the UK would have to sacrifice 12 cloth (multiply the above equilibrium for UK by 3, so 9 wheat = 12 cloth in the UK) but since it is getting the same amount of wheat from the US by only giving the US 8 yards of cloth, UK is better off by 4 yards of cloth. 
  • Question 7

5 out of 5 points

According to the following table, the UK can gain from trade with the US by giving up how much cloth for 9 bushels of wheat?   U.S. U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 5 4  
Selected Answer: A.  Anything less than 12 yards of cloth Answers: A.  Anything less than 12 yards of cloth B.  Anything greater than 9 yards of cloth C.  Only less than 5 yards of cloth D.  Only greater than 10 yards of cloth
  • Question 8

5 out of 5 points

According to the following table, the US has a comparative advantage in:   U.S. U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 6 4  
Selected Answer: A.  Wheat Answers: A.  Wheat B.  Cloth C.  Both D.  Neither
  • Question 9

5 out of 5 points

According to the following table, the UK has a comparative advantage in:   U.S. U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 6 4  
Selected Answer: B.  Cloth Answers: A.  Wheat B.  Cloth C.  Both D.  Neither
  • Question 10

2 out of 2 points

True or False? Even if Country A has an absolute advantage in the production of all commodities over country B, David Ricardo claimed that the basis for mutually beneficial trade could still exist.
Selected Answer:  True Answers:  True False
  • Question 11

2 out of 2 points

True or False? According to the law of comparative advantage, the less efficient of the two trading countries should specialize in and export the commodity in which it manages to have an absolute advantage.
Selected Answer:  False Answers: True  False
  • Question 12

5 out of 5 points

Which theory states that a nation will tend to export commodities intensive in its relatively abundant and cheap factor?
Selected Answer: A.  Heckscher-Ohlin theory Answers: A.  Heckscher-Ohlin theory B.  Stolper-Samuelson theory C.  Product cycle theory D.  Intraindustry trade theory
  • Question 13

5 out of 5 points

Which of the following is a part of the Heckscher-Ohlin model that states international trade will bring about equalization in the returns to homogeneous factors across nations?
Selected Answer: A.  Factor-price equalization theorem Answers: A.  Factor-price equalization theorem B.  Factor-proportions theory C.  Factor-endowment theory D.  Product cycle theory
  • Question 14

5 out of 5 points

Assume that Country A is relatively abundant in capital and relatively scarce in land. According to the factor endowment theory, with free trade, the internal distribution of income in Country A will change in favor of:
Selected Answer: A.  capital Answers: A.  capital B.  land C.  both capital and land D.  neither capital nor land
  • Question 15

5 out of 5 points

Mexico is relatively abundant in labor, while Canada is relatively abundant in capital. In both nations, the production of televisions is relatively more capital intensive than the production of corn. According to the factor endowment theory, Mexico will have a(n):
Selected Answer: C.  comparative advantage in the production of corn Answers: A.  absolute advantage in the production of corn and computers B.  absolute advantage in the production of corn C.  comparative advantage in the production of corn D.  comparative advantage in the production of computers
  • Question 16

5 out of 5 points

A product will be internationally trades as long as the pre-trade price differential between the trading partners is:
Selected Answer: B.  greater than the transportation cost of the good Answers: A.  equal to the transportation cost of the good B.  greater than the transportation cost of the good C.  less than the transportation cost of the good D.  none of the above
  • Question 17

5 out of 5 points

Which of the following is not an example of a capital rich nation?
Selected Answer: C.  India Answers: A.  Canada B.  Germany C.  India D.  Italy
  • Question 18

5 out of 5 points

Which of the following are possible sources of bias for the Leontief paradox?
Selected Answer: D.  All of the above Answers: A.  Leontief only used a two-factor model B.  Misclassification of factors such as natural resources C.  The inclusion of only physical capital in the measure of capital D.  All of the above
  • Question 19

2 out of 2 points

True or False? Leontief’s empirical findings agreed with the Heckscher-Ohlin trade model which predicts that, as the most capital abundant nation, the U.S. should import labor-intensive products.
Selected Answer:  False Answers: True  False
  • Question 20

2 out of 2 points

True or False? Low-skilled US labor was in favor of NAFTA because it will inevitably increase the standard of living for the country as a whole.
Selected Answer:  False Answers: True  False
  • Question 21

2 out of 2 points

True or False? As a result of environmentalist efforts, for the past three decades polluting and dirty industry exports have expanded slower relative to clean industries and their exports.
Selected Answer:  False Answers: True  False
 
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