4. We say that commodity Y is K-intensive with respect to X when: A. more K is used in the production of Y than X B. less L is used in the production of Y than X
*C. a lower L/K ratio is used in the production of Y than X D. a higher K/L is used in the production of X than Y
5. When w/r falls, L/K
A. falls in the production of both commodities *B. rises in the production of both commodities C. can rise or fall D. is not affected
6. A nation is said to have a relative abundance of K if it has a: A. greater absolute amount of K B. smaller absolute amount of L C. higher L/K ratio *D. lower r/w
7. A difference in relative commodity prices between nations can be based on a difference in: A. technology B. factor endowments C. tastes
*D. all of the above
8. In the H-O model, international trade is based mostly on a difference in: A. technology
*B. factor endowments C. economies of scale D. tastes
9. According to the H-O model, trade reduces international differences in: A. relative but not absolute factor prices B. absolute but not relative factor prices *C. both relative and absolute factor prices D. neither relative nor absolute factor prices
10. According to the H-O model, international trade will: A. reduce international differences in per capita incomes B. increases international differences in per capita incomes
*C. may increase or reduce international differences in per capita incomes D. lead to complete specialization
11. The H-O model is a general equilibrium model because it deals with: A. production in both nations B. consumption in both nations C. trade between the two nations *D. all of the above
12. The H-O model is a simplification of the a truly general equilibrium model because it deals with: A. two nations B. two commodities C. two factors of production *D. all of the above
13. The Leontief paradox refers to the empirical finding that U.S. *A. import substitutes are more K-intensive than exports B. imports are more K-intensive than exports C. exports are more L-intensive than imports
D. exports are more K-intensive than import substitutes
14. From empirical studies, we conclude that the H-O theory: A. must be rejected
B. must be accepted without reservations *C. can be accepted while awaiting further testing D. explains all international trade
15. For factor reversal to occur, two commodities must be produced with: *A. sufficiently different elasticity of substitution of factors B. the same K/L ratio
C. technologically-fixed factor proportions D. equal elasticity of substitution of factors 思考题：
H-O理论有哪些假设？各假设的含义是什么？为什么要做出这些假设？ 如何检验H-O理论的正确性？
H-O-S定理的假设条件又是什么？他与生产要素国际间的流动有何关系？ 如何检验H-O-S定理在现实中的可靠性？
Chapter 6: Economies of Scale, Imperfect Competition, and International Trade
Multiple-Choice Questions:
1. Relaxing the assumptions on which the Heckscher-Ohlin theory rests: A. leads to rejection of the theory B. leaves the theory unaffected
*C. requires complementary trade theories D. any of the above.
Which of the following assumptions of the Heckscher-Ohlin theory, when relaxed, leave
the theory unaffected?
A. Two nations, two commodities, and two factors B. both nations use the same technology
C. the same commodity is L-intensive in both nations *D. all of the above
Which of the following assumptions of the Heckscher-Ohlin theory, when relaxed, require new trade theories?
*A. Economies of scale B. incomplete specialization C. similar tastes in both nations D. the existence of transportation costs
International trade can be based on economies of scale even if both nations have identical:
A. factor endowments B. tastes C. technology *D. all of the above
5. A great deal of international trade: A. is intra-industry trade B. involves differentiated products C. is based on monopolistic competition
*D. all of the above
6. The Heckscher-Ohlin and new trade theories explains most of the trade: A. among industrial countries
B. between developed and developing countries C. in industrial goods *D. all of the above
The theory that a nation exports those products for which a large domestic market exists
was advanced by: *A. Linder B. Vernon C. Leontief D. Ohlin
8. Intra-industry trade takes place: A. because products are homogeneous
*B. in order to take advantage of economies of scale
C. because perfect competition is the prevalent form of market organization D. all of the above
If a nation exports twice as much of a differentiated product that it imports, its intra- industry (T) index is equal to: A. 1.00 B. 0.75 *C. 0.50 D. 0.25