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国际经济学(外语)习题3
I. Objective Questions
1. Which of the following is not an assumption of factor proportions theory?
(a) firms are price takers in both factor and commodity markets.
(b) factors are immobile between countries.
(c) the price of each factor is the same in the two countries.
(d) factors are mobile within each country.
2. Automobile manufacturing is capital intensive and rug manufacturing is labor intensive. The U.S. has 100 million workers and $3,000 billion of capital. Peru has 20 million workers and $400 billion of capital. According to the factor proportions theory this implies that
(a) the U.S. will specialize in producing automobiles, and Peru in producing rugs.
(b) the U.S. will specialize in producing rugs, and Peru in producing automobiles.
(c) neither country will specialize or trade with the other.
(d) the U.S. will export both goods.
3. If country A is labor abundant and country B is capital abundant, factor proportions theory predicts free trade will cause
(a) wages to fall in country A, and the return to capital to rise in country B.
(b) wages to rise in country A, and the return to capital to fall in country B.
(c) wages to rise in country A, and the return to capital to rise in country B.
(d) wages to fall in country A, and the return to capital to fall in country B.
4. Which of the following is not a criticism of the factor proportions theory?
(a) it assumes international factor immobility.
(b) it focuses almost entirely on supply conditions and ignores demand.
(c) it is limited by the assumption of constant returns to scale.
(d) it considers labor as the only factor of production.
5. A large home market can lead to a comparative advantage in goods produced under conditions of
(a) increasing returns to scale.
(b) decreasing returns to scale.
(c) constant returns to scale.
(d) none of the above.
6. If a countrys growth is biased towards imports, as its economy grows its terms of trade will
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