12. Professor Leamer found that when factors of production are properly bundled, the

Heckscher-Olin theory of trade is supported. True or False

13. Under the revised trade agreement with Korea, the U.S. import tariffs on light trucks has

been removed. True or False

14. The recent trade agreement with Japan contains a new section dealing with electronic

commerce, digital privacy, and related matters. True or False

15. The China Phase One agreement has resolved the disputes over intellectual property

rights. True or False

16. The China Phase One agreement on increased purchases of U.S. products is on track to

be completely fulfilled. True or False

17. The Trans-Pacific Partnership would have clearly led to an improvement in the U.S.

balance of payment and an increase in the growth rate of GDP. True or False

18. Most of the counterfeit merchandise arriving in the U.S. was made in China. True or

False

19. With international trade no industry sector ever loses. True or False

20. The Trade Adjustment Act provides funds for improving port facilities. True or False

21. A country with no absolute advantage cannot benefit from trade. True or False

22. In Figure 4 the demand schedule with trade is more horizontal because of more

substitutes. True or False

23. In Figure 4 the downward sloping demand schedule indicates perfect competition. True

or False

24. The factor price equalization theorem states that, given certain conditions and

assumptions, free trade equalizes not only product prices but also the prices of individual

factors between the two countries. True or False

25. Freer trade with low-wage countries not only might cause incomes in the U.S. to become

more unequal, but it may also cause the pay of low-skilled workers to fall absolutely.

True or False

26. Productivity gains are a necessity for wage gains and a rising standard of living. True or

False

27. The use of economic development districts and clusters in China has not led to faster

growth. True or False

28. The gravity model of trade maintains trade decreases with the distance between trading

partners. True or False

29. Under the Jones Act, foreign owned liquefied natural gas carrying ships still may load

gas in Houston and unload it in New England. True or False

30. JaxPort is primarily a lessor of land and equipment. True or False