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28) If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, we predict that Gambinia will export A) capital-intensive goods. B) labor-intensive goods.

C) both capital- and land-intensive goods. D) land-intensive goods.

E) both labor- and land-intensive goods.

29) If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, in order to improve the country¡¯s economic welfare, the Gambinian government should A) engage in free trade.

B) protect the capital-intensive product. C) protect the land-intensive product. D) protect the labor-intensive product. E) discontinue all international trade.

30) Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins A) wages and rents should rise in H. B) wages and rents should fall in H.

C) wages should rise and rents should fall in H. D) wages should fall and rents should rise in H. E) rent will be unchanged but wages will rise in H.

31) Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model,

A) European capitalists should support U.S.-European free trade. B) European landowners should support U.S.-European free trade. C) all capitalists in both countries should support free trade. D) all landowners should support free trade.

E) the U.S. should compensate European countries once trade commences.

32) International trade has strong effects on income distributions. Therefore, international trade A) is beneficial to everyone in both trading countries. B) will tend to hurt some groups in each trading country. C) will tend to hurt one trading country.

D) will tend to hurt everyone in both countries.

E) will be beneficial to all those engaged in international trade.

33) Factors tend to be specific to certain uses and products A) in countries lacking comparative advantage. B) in capital-intensive industries.

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C) in labor-intensive industries.

D) in countries lacking fair labor laws. E) in the short run.

34) If the price of the capital intensive product rises more than does the price of the land intensive product, then

A) the relative price of the capital intensive product will fall to some point between the pretrade relative prices.

B) demand will shift away from the capital-intensive product, and its production will decrease. C) demand will shift away from the capital-intensive product, and its production will decrease relative to that of the land intensive product.

D) the production of the capital-intensive product will decrease, but by less than production of the land-intensive product.

E) the country that exports the capital-intensive good will lose its comparative advantage.

35) If trade opens up between the two formerly autarkic countries, Australia and Belgium, then A) the real income of Australia and of Belgium will increase. B) the real income of Australia but not of Belgium will increase. C) the real income of both countries may increase. D) the real income of neither country will increase. E) the real income of both countries will increase.

36) The Leontieff Paradox

A) supported the validity of the Ricardian theory of comparative advantage. B) supported the validity of the Heckscher-Ohlin model.

C) failed to support the validity of the Heckscher-Ohlin model. D) failed to support the validity of the Ricardian theory. E) proved that the U.S. economy is different from all others.

37) The Leontieff Paradox

A) refers to the finding that U.S. Exports were more capital intensive than its exports. B) refers to the finding that U.S. exports were more labor intensive than its imports. C) refers to the finding that the U.S. produces outside its Edgeworth Box. D) still accurately applies to today¡¯s pattern of U.S. international trade.

E) refers to the fact that Leontieffª¥an American economistª¥had a Russian name.

38) The 1987 study by Bowen, Leamer and Sveikauskas A) supported the validity of the Heckscher-Ohlin model. B) used a two-country and two-product framework.

C) demonstrated that in fact countries tend to use different technologies. D) proved that the U.S.¡¯s comparative advantage relied on skilled labor. E) supported the validity of the Leontieff Paradox.

39) Empirical observations on actual North-South trade patterns tend to

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A) support the validity of the Heckscher-Ohlin model. B) support the validity of the Leontieff Paradox. C) support the validity of the Rybczynski Theorem.

D) support the validity of the wage equalization theorem.

E) support the validity of the neo-imperialism exploitation theory.

40) The Case of the Missing Trade refers to

A) the 9th volume of the Hardy Boys¡¯ Mystery series.

B) the fact that world exports does not equal world imports.

C) the fact that factor trade is less than predicted by the Heckscher-Ohlin theory.

D) the fact that the Heckscher Ohlin theory predicts much less volume of trade than actually exists.

E) the fact that the Heckscher Ohlin theory never applies to China-U.S. trade practices.

41) Which of the following is an assertion of the Heckscher-Ohlin model?

A) An increase in a country¡¯s labor supply will increase productio ¡­¡­ ´Ë´¦Òþ²Ø£º5095×Ö£¬È«²¿ÎĵµÄÚÈÝÇëÏÂÔغó²é¿´¡£Ï²»¶¾ÍÏÂÔØ°É ¡­¡­