exercises 2的.pptVIP

I. Decide whether the following statements are true or false.;1. The most important representative in Late Mercantilism is A. Thomas Mun B. David Ricardo C. Adam Smith D. Heckscher;4. Heckscher-Ohlin put forward ( ) A. The Theory of Absolute Advantages B. The Theory of Comparative Advantages C. The Theory of Product Cycle D. The Theory of Factor Proportions;7. What proportion of international trade is based on absolute advantage? A. all B. most C. some D. none;10. With one hour of labor time nation A can produce either 3X or 3Y while nation B can produce either 1X or 3Y (and labor is the only input) , if 3X is exchanged for 3Y, ( ). A. nation A gains 2X B. nation B gains 6Y C. nation A gains 3Y D. nation B gains 3Y;14. In the H-O model, international trade is based mostly on a difference in ( ) A. technology B. factor endowments C. economies of scale D. tastes;18. Intra-industry trade takes place ( ) A. because products are homogeneous B. in order to take advantage of economies of scale C. because perfect competition is the prevalent form of market organization D. all of the above;21. Which of the following statements is NOT true? ( ) A. According to Smith’s view, trade was mutually beneficial and was a positive-sum game. B. Leontief conducted an empirical test of the H-O theorem and found that US exports were relatively more capital-intensive than US imports. C. Late Mercantilism stressed a favorable balance of trade. D. According to H-O theory, cost differences are determined by factor prices, and factor prices are determined by the endowments of labor and capital the country possession.;4. The following table shows bushels of wheat and the yards of cloth that the United States and the United Kingdom can produce with one hour of labor time under four different hypothetical situations. ;In each case, identify the commodity in which the United States and the United Kingdom