chapter 7 tmqt

Which of the following differs in its essential analytical framework?

• International trade in goods

• International conflict resolution

• International trade in services

• International trade in factors of production

• International borrowing and lending

The slope of the production function measures

• the physical increase in output as country grows

• the dollar-value increase in output as a country grows

• the increase in number of workers as immigration proceeds

• the marginal product of labor

• the marginal product of capital.

International free labor mobility will under all circumstances

• increase total world output

• improve the economic welfare of everyone.

• improve the economic welfare of workers everywhere.

• improve the economic welfare of landlords (or capital owners) everywhere

• None of the above.

If the world attained a perfect Heckscher-Ohlin model equilibrium with trade, then

• workers in the labor abundant country would migrate to the capital abundant country.

• workers in the labor abundant country would wish to migrate to the capital abundant country

• workers in the labor abundant country would have no desire to migrate to the capital abundant country.

• workers in the capital abundant country would wish to migrate to the labor abundant country.

• workers in the capital abundant country would migrate to the labor abundant country.

During the mass migration period of late 19th-early 20th centuries,

• wages rose in the origin countries and fell in the destination countries.

• wages fell in the origin countries and rose in the destination countries.

• wages generally rose faster in the origin countries.

• wages generally rose faster in the destination countries.

• wages generally fell faster in the origin countries.

International borrowing and lending may be interpreted as one form of

• intermediate trade.

• inter-temporal trade

• trade in services.

• unrequited international transfers.

• None of the above

The relative price of future consumption is

• the interest rate

• unknown at any given time

• the real interest rate

• the relative interest rate.

• None of the above

A country that has a comparative advantage in future production of consumption goods

• will tend to be an international borrower.

• will tend to have low real interest rates

• will tend to be an international investor or lender.

• will tend to have good work ethics.

• None of the above

A U.S. multinational corporation

• has a controlling share in a foreign subsidiary and is not itself foreign controlled.

• is foreign controlled and has no controlling share in a foreign company.

• has a controlling share in a foreign subsidiary and may itself be foreign controlled by a foreign company.

• is a U.S. company whose major markets are outside the United States

• None of the above

Why a good is produced in two different countries is known as the question of

• internalization

• vertical integration

• exploitation

• location.

• None of the above.