MBA 680 FINAL EXAM TEST LATEST
UPDATE WITH 100% SOLVED -
GRADED A+ VERIFIED 2026 - 2027
UPDATE
According to the Stolper-Samuelson theorem, an increase in the
price of a country's imports will - correct answer- raise
the returns to the factor of production used intensively in the
import-competing industry.
Assume the standard trade model with two countries (Alpha and
Beta), two goods (food and drink), and two factors of production
(land and labor). Further assume that Alpha is relatively labor-
abundant and drink is relatively labor-intensive. Which of the
following is most likely to happen in the long run following the
opening of free trade between the countries? - correct
answer- The workers in Alpha will be better off but the
landowners will be worse off.
Assume the standard trade model with two countries (Alpha and
Beta), two goods (food and drink), and two factors of production
(land and labor). Further assume that Alpha is relatively labor-
abundant and food is relatively land-intensive. The no-trade
wage rate relative to land rents in Alpha is _____ the relative
wage rate in Beta. - correct answer- less than
, Considering the United States to be a capital-abundant country,
which of the following facts would contradict the predictions of
the Heckscher-Ohlin theory? - correct answer- The
United States is a net importer of capital-intensive products.
Let's assume that cloth-making (labor-intensive) and farming
(land-intensive) are the only two sectors of production in a
country. If this country is labor-abundant, and if trade
corresponds to the Heckscher-Ohlin theory, which of the
following groups will gain in the short run, but lose in the long
run, from the opening of trade? - correct answer-
Domestic landowners in the domestic cloth-making sector
Suppose Country A, a labor-abundant country, produces only
drink and furniture. The following equations illustrate the prices
and costs of drink and furniture in the country, where the
numbers indicate the amounts of labor and land needed to
produce a unit of drink and furniture. '
W' is the wage rate and 'r' is the rental rate of land.
Price of drink = 1w + 2r
Price of furniture = 2w + 1r
UPDATE WITH 100% SOLVED -
GRADED A+ VERIFIED 2026 - 2027
UPDATE
According to the Stolper-Samuelson theorem, an increase in the
price of a country's imports will - correct answer- raise
the returns to the factor of production used intensively in the
import-competing industry.
Assume the standard trade model with two countries (Alpha and
Beta), two goods (food and drink), and two factors of production
(land and labor). Further assume that Alpha is relatively labor-
abundant and drink is relatively labor-intensive. Which of the
following is most likely to happen in the long run following the
opening of free trade between the countries? - correct
answer- The workers in Alpha will be better off but the
landowners will be worse off.
Assume the standard trade model with two countries (Alpha and
Beta), two goods (food and drink), and two factors of production
(land and labor). Further assume that Alpha is relatively labor-
abundant and food is relatively land-intensive. The no-trade
wage rate relative to land rents in Alpha is _____ the relative
wage rate in Beta. - correct answer- less than
, Considering the United States to be a capital-abundant country,
which of the following facts would contradict the predictions of
the Heckscher-Ohlin theory? - correct answer- The
United States is a net importer of capital-intensive products.
Let's assume that cloth-making (labor-intensive) and farming
(land-intensive) are the only two sectors of production in a
country. If this country is labor-abundant, and if trade
corresponds to the Heckscher-Ohlin theory, which of the
following groups will gain in the short run, but lose in the long
run, from the opening of trade? - correct answer-
Domestic landowners in the domestic cloth-making sector
Suppose Country A, a labor-abundant country, produces only
drink and furniture. The following equations illustrate the prices
and costs of drink and furniture in the country, where the
numbers indicate the amounts of labor and land needed to
produce a unit of drink and furniture. '
W' is the wage rate and 'r' is the rental rate of land.
Price of drink = 1w + 2r
Price of furniture = 2w + 1r
