True or False Questions: (1)Migration of labor would cease even if absolute and

Question

True or False Questions:
(1)Migration of labor would cease even if absolute and relative factor prices had not been equalised.
(2) If we assume there is transport costs for commodities to move, the presumption towards factor-price equalisation would be still hold.
(3) If we assume production functions are not identical between countries, the presumption towards factor-price equalisation would not be hold.
(4)If we add a third productive factor and retain but two commodities, the presumption towards factor-price equalisation would not be hold.
(5) If we assume scale is not constant returns, increasing returns, the presumption towards factor-price equalisation would be still hold.
(6)When a country moves from restricted trade to free trade, the factor that is relatively scarce is going to experience loss in earnings.
(7)When a country moves from restricted trade to free trade, the abundant factor will benefit .
(8) An export subsidy increases the ranges of both domestic exports and imports.
(9) A subsidy to capital are more effective than a wage subsidy.
(10) According to H-O theorem, a country tends to export those commodities which use its scarce factors of production intensively.
(11) According to the theorem of Heckscher-Ohlin, a country tends to import those commodities which use its abundant factor intensively.
(12) The development of a new commodity may reduce the value of its old substitute to zero.
(13) Because of the scale economies, trade will occur even between countries with identical tastes, technology, and factor endowments.
(14) trade need be a result of international differences in technology or factor endowments.
(15) The effect of workers migrating from low-wage Mexico to high-wage United States is to redistribute income from capital to labor in the United States and from labor to capital in Mexico.
(16)The model “Oligopoly, homogeneous products and intraindustry trade” is first developed by Krugman and Helpman .
(17)Trade in factors is very much like trade in goods, it occurs for much the same reasons and produces similar results.
(18)Trade in factors is an alternative() to trade in goods for the allocation of resources. True or False Questions:
(1)Migration of labor would cease even if absolute and relative factor prices had not been equalised.
(2) If we assume there is transport costs for commodities to move, the presumption towards factor-price equalisation would be still hold.
(3) If we assume production functions are not identical between countries, the presumption towards factor-price equalisation would not be hold.
(4)If we add a third productive factor and retain but two commodities, the presumption towards factor-price equalisation would not be hold.
(5) If we assume scale is not constant returns, increasing returns, the presumption towards factor-price equalisation would be still hold.
(6)When a country moves from restricted trade to free trade, the factor that is relatively scarce is going to experience loss in earnings.
(7)When a country moves from restricted trade to free trade, the abundant factor will benefit .
(8) An export subsidy increases the ranges of both domestic exports and imports.
(9) A subsidy to capital are more effective than a wage subsidy.
(10) According to H-O theorem, a country tends to export those commodities which use its scarce factors of production intensively.
(11) According to the theorem of Heckscher-Ohlin, a country tends to import those commodities which use its abundant factor intensively.
(12) The development of a new commodity may reduce the value of its old substitute to zero.
(13) Because of the scale economies, trade will occur even between countries with identical tastes, technology, and factor endowments.
(14) trade need be a result of international differences in technology or factor endowments.
(15) The effect of workers migrating from low-wage Mexico to high-wage United States is to redistribute income from capital to labor in the United States and from labor to capital in Mexico.
(16)The model “Oligopoly, homogeneous products and intraindustry trade” is first developed by Krugman and Helpman .
(17)Trade in factors is very much like trade in goods, it occurs for much the same reasons and produces similar results.
(18)Trade in factors is an alternative() to trade in goods for the allocation of resources. True or False Questions:
(1)Migration of labor would cease even if absolute and relative factor prices had not been equalised.
(2) If we assume there is transport costs for commodities to move, the presumption towards factor-price equalisation would be still hold.
(3) If we assume production functions are not identical between countries, the presumption towards factor-price equalisation would not be hold.
(4)If we add a third productive factor and retain but two commodities, the presumption towards factor-price equalisation would not be hold.
(5) If we assume scale is not constant returns, increasing returns, the presumption towards factor-price equalisation would be still hold.
(6)When a country moves from restricted trade to free trade, the factor that is relatively scarce is going to experience loss in earnings.
(7)When a country moves from restricted trade to free trade, the abundant factor will benefit .
(8) An export subsidy increases the ranges of both domestic exports and imports.
(9) A subsidy to capital are more effective than a wage subsidy.
(10) According to H-O theorem, a country tends to export those commodities which use its scarce factors of production intensively.
(11) According to the theorem of Heckscher-Ohlin, a country tends to import those commodities which use its abundant factor intensively.
(12) The development of a new commodity may reduce the value of its old substitute to zero.
(13) Because of the scale economies, trade will occur even between countries with identical tastes, technology, and factor endowments.
(14) trade need be a result of international differences in technology or factor endowments.
(15) The effect of workers migrating from low-wage Mexico to high-wage United States is to redistribute income from capital to labor in the United States and from labor to capital in Mexico.
(16)The model “Oligopoly, homogeneous products and intraindustry trade” is first developed by Krugman and Helpman .
(17)Trade in factors is very much like trade in goods, it occurs for much the same reasons and produces similar results.
(18)Trade in factors is an alternative() to trade in goods for the allocation of resources.

Explanation / Answer

1 false. It would not cease under ideal setting

2 false. It would not hold because there would be difference of transportation costs

3 true. Then there will be different prices due to different costs

4 false. It would hold

6 true according to stopler samulson theorem

Can answer only 4 parts according to chegg policy. Please send other parts as separate question

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.