Intnationa Economics; FIT

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: 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:

·         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 :

·         Question 4

5 out of 5 points

	Which of these economists considered absolute advantage in production to be the basis for trade between nations?

·         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

·         Question 6

0 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: B. 3 yards of cloth Correct Answer: C. 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

·         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

·         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

·         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.

·         Question 11

0 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.

·         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?

·         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?

·         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:

·         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):

·         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:

·         Question 17

5 out of 5 points

	Which of the following is not an example of a capital rich nation?

·         Question 18

5 out of 5 points

	Which of the following are possible sources of bias for the Leontief paradox?

·         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.
	Correct Answer:  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.

·         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.