International Trade Theory and Policy
by Steven M. Suranovic

Trade 60

Trade 60

Trade Problem Set 60 J-1

DIRECTIONS: As in the popular TV game show, you are given an answer to a question and you must respond with the question. For example, if the answer is, "a tax on imports", then the correct question is, "What is a tariff?"

  1. nationality of the two economists, Eli Heckscher and Bertil Ohlin.
  2. term used to describe Argentina if Argentina has more land per unit of capital than Brazil.
  3. term used to describe aluminum production when aluminum production requires more energy per unit of capital than steel production.
  4. general term used to describe the amount of a factor needed to produce one unit of a good.
  5. the two key terms used in the Heckscher-Ohlin model; one to compare industries, the other to compare countries.
  6. term used to describe when the capital-labor ratio in an industry varies with changes in market wages and rents.
  7. term describing the ratio of the unit-capital requirement and the unit-labor requirement in production of a good.
  8. the assumption in the Heckscher-Ohlin model about unemployment of capital and labor.
  9. interpretation given for the slope of the production possibility frontier.
  10. the H-O model theorem that would be applied to identify the effects of a tariff on the prices of goods and factors.

International Trade Theory and Policy - Chapter 60: Last Updated on 1/06/08