Thanks for the help
Question 51 (3 points) Brazil and France are trading partners. Brazil has a comparative advantage in coffee production and France has a comparative advantage in the production of wine. Both coffee production and wine production require land and labour but coffee production is more labour intensive. Brazil exports coffee and imports wine. The relevant HO trade theorem that would explain this is the O a) Heckscher Ohlin theorem. O b) Stolper Samuelson theorem. c) Rybczynski theorem. O d) Factor Price Equalization theorem. O e) None of the aboveQuestion 52 (3 points) Germany is relatively well endowed with capital and Australia is relatively well endowed with land. After trade we observe the prices of land and capital. The relevant HO trade theorem that would help determine this is the a) Heckscher Ohlin theorem. ( b) Stolper Samuelson theorem. O c) Rybczynski theorem. O d) Factor Price Equalization theorem. O e) None of the aboveQuestions 49 - 52 In Questions 49 - 52 pick one of the 4 theorems from the Heckscher Ohlin (HO) model which is most relevant in understanding the statement in the problem. Question 49 (3 points) China and the small island nation of Papua New Guinea are trade partners. If Papua New Guinea sees an increase in the number of high school graduates in the labour force, the production of manufactured goods increases and that of agricultural goods falls. The relevant HO trade theorem that would explain this is the ( a) Heckscher Ohlin theorem. b) Stolper Samuelson theorem. K O c) Rybczynski theorem. O d) Factor Price Equalization theorem. O e) None of the above Page 51 of 66 Previous Page Next PagePrevious Page Next Page Page 55 of 66 Questions 53 - 56 Problems 53- 56 test your knowledge of the Heckscher Ohlin model. Question 53 (3 points) Which of the following statements about the Stolper Samuleson Theorem is correct? (a) If trade results in a world equilibrium price between the autarky relative prices in the two trading countries, the factor rewards move in the same direction in both countries. (b) An increase in the price of a good results in a fall in the factor reward of the factor used less intensively in the production of the good ) If the capital/labour ratio is currently greater in producing cars than cloth, an increase in the relative price of cloth will increase the capital/labour ratio in the production of both goods. d) Both (b) and (c) e) All of the aboveQuestion 50 (3 points) Mexico and Canada are trading partners. Canada is relatively well endowed with capital (used relatively intensively to produce metal), and Mexico is relatively well endowed with farmland (used intensively in the production of vegetables). Trade results in an increase the price of land in Mexico. The relevant HO trade theorem that would explain this is the a) Heckscher Ohlin theorem. O b) Stolper Samuelson theorem. c) Rybczynski theorem. O d) Factor Price Equalization theorem. O e) None of the abovePrevious Page Next Page Page 57 of 66 Question 55 (3 points) Which of the following statements about the Factor Price Equalization Theorem is correct? a) The theorem fails when technologies differ between countries. ( b) The theorem relies on international mobility of the factors of production. ( c) The theorem is actually a statement about relative prices not about absolute factor rewards. O d) Both (a) and (b) O e) All of the above.Questions 49 - 52 In Questions 49 - 52 pick one of the 4 theorems from the Heckscher Ohlin (HO) model which is most relevant in understanding the statement in the problem. Question 49 (3 points) China and the small island nation of Papua New Guinea are trade partners. If Papua New Guinea sees an increase in the number of high school graduates in the labour force, the production of manufactured goods increases and that of agricultural goods falls. The relevant HO trade theorem that would explain this is the ( a) Heckscher Ohlin theorem. b) Stolper Samuelson theorem. K O c) Rybczynski theorem. O d) Factor Price Equalization theorem. O e) None of the above Page 51 of 66 Previous Page Next Pagemmad Navid: Attempt 1 Previous Page Next Page Page 58 of 66 Question 56 (3 points) Which of the following statements about the Heckscher Ohlin Theorem is correct? a) The theorem requires specialization of production in both countries (b) Relative factor endowments rather than technological differences result in comparative advantage. ( c) If the factors of production in one country are doubled, it is possible, but not likely, that comparative advantage and the pattern of trade could be reversed. O d) Both (b) and (c) e) All of the above Previous Page Next Page Page 58 of 66
