国际经济学-选择题集(含答案)

Contents

Chapter3LaborProductivityandComparativeAdvantage:TheRicardianModel

2

Chapter4SpecificFactorsandIncomeDistribution

13

Chapter5ResourcesandTrade:TheHeckscher-OhlinModel

22

Chapter6TheStandardTradeModel31

Chapter7EconomiesofScale,imperfectCompetition,andInternationalTrade

41

Chapter8InternationalFactorMovements50

Chapter9TheInstrumentsofTradePolicy

60

Chapter3:LaborProductivityandComparativeAdvantage-The

RicardianModel

MultipleChoiceQuestions

1.Countriestradewitheachotherbecausetheyareandbecauseof

A.different,costs

B.similar,scaleeconomies

C.different,scaleeconomies

D.similar,costs

E.Noneoftheabove.

2.Tradebetweentwocountriescanbenefitbothcountriesif

A.eachcountryexportsthatgoodinwhichithasacomparative

advantage.

B.eachcountryenjoyssuperiortermsoftrade.

C.eachcountryhasamoreelasticdemandfortheimportedgoods.

D.eachcountryhasamoreelasticsupplyforthesuppliedgoods.

E.BothCandD.

3.TheRicardiantheoryofcomparativeadvantagestatesthatacountiyhasa

comparativeadvantageinwidgetsif

A.outputperworkerofwidgetsishigherinthatcountry.

B.thatcountry'sexchangerateislow.

C.wageratesinthatcountryarehigh.

D.theoutputperworkerofwidgetsascomparedtotheoutputof

someotherproductishigherinthatcountry.

E.BothBandC.

4.Inordertoknowwhetheracountryhasacomparativeadvantageinthe

productionofoneparticularproductweneedinformationonatleast

unitlaborrequirements

A.one

B.two

C.three

D.four

E.five

5.Acountryengagingintradeaccordingtotheprinciplesofcomparative

advantagegainsfromtradebecauseit

A.isproducingexportsindirectlymoreefficientlythanitcould

alternatively.

B.isproducingimportsindirectlymoreefficientlythanitcould

domestically.

C.isproducingexportsusingfewerlaborunits.

D.isproducingimportsindirectlyusingfewerlaborunits.

E.Noneoftheabove.

6.Giventhefollowinginformation:

UnitLaborRequiieinents

ClothWidgets

Home1020

Foreign6030

A.Neithercountryhasacomparativeadvantage.

B.Homehasacomparativeadvantageincloth.

C.Foreignhasacomparativeadvantageincloth.

D.Homehasacomparativeadvantageinwidgets.

E.Homehasacomparativeadvantageinbothproducts.

7.IfitisascertainedthatForeignusesprison-slavelabortoproduceits

exports,thenhomeshould

A.exportcloth.

B.exportwidgets.

C.exportbothandimportnothing.

D.exportandimportnothing.

E.Alloftheabove.

8.IftheHomeeconomysufferedameltdown,andtheUnitLabor

Requirementsineachoftheproductsquadrupled(thatis,doubledto30

forclothand60forwidgets)thenhomeshould

A.exportcloth.

B.exportwidgets.

C.exportbothandimportnothing.

D.exportandimportnothing.

E.Alloftheabove.

9.IfwagesweretodoubleinHome,thenHomeshould:

A.exportcloth.

B.exportwidgets.

C.exportbothandimportnothing.

D.exportandimportnothing.

E.Alloftheabove.

10.Iftheworldequilibriumpriceofwidgetswere4Cloths,then

A.bothcountriescouldbenefitfromtradewitheachother.

B.neithercountrycouldbenefitfromtradewitheachother.

C.eachcountrywillwanttoexportthegoodinwhichitenjoys

comparativeadvantage.

D.neithercountrywillwanttoexportthegoodinwhichitenjoys

comparativeadvantage.

E.bothcountrieswillwanttospecializeincloth.

11.Giventhefollowinginformation:

NumberofUnitsProducedbyoneUnitofLabor

ClothWidgets

Home1()20

Foreign603()

A.Neithercountryhasacomparativeadvantage.

B.Homehasacomparativeadvantageincloth.

C.Foreignhasacomparativeadvantageincloth.

D.Foreignhasacomparativeadvantageinwidgets.

E.Homehasacomparativeadvantageinbothproducts.

12.TheopportunitycostofclothintermsofwidgetsinForeignisifitis

ascertainedthatForeignusesprison-slavelabortoproduceitsexports,

thenhomeshould

A.exportcloth.

B.exportwidgets.

C.exportbothandimportnothing.

D.exportandimportnothing.

E.Alloftheabove.

13.IfwagesweretodoubleinHome,thenHomeshould

A.exportcloth.

B.exportwidgets.

C.exportbothandimportnothing.

D.exportandimportnothing.

E.Alloftheabove.

14.Iftheworldequilibriumpriceofwidgetswere4Cloths,then

A.bothcountriescouldbenefitfromtradewitheachother.

B.neithercountrycouldbenefitfromtradewitheachother.

C.eachcountrywillwanttoexportthegoodinwhichitenjoys

comparativeadvantage.

D.neithercountrywillwanttoexportthegoodinwhichitenjoys

comparativeadvantage.

E.bothcountrieswillwanttospecializeincloth.

15.Iftheworldequilibriumpriceofwidgetswere40cloths,then

A.bothcountriescouldbenefitfromtradewitheachother.

B.neithercountrycouldbenefitfromtradewitheachother.

C.eachcountrywillwanttoexportthegoodinwhichitenjoys

comparativeadvantage.

D.neithercountrywillwanttoexportthegoodinwhichitenjoys

comparativeadvantage.

E.bothcountrieswillwanttospecializeincloth.

16.Inatwoproducttwocountryworld,internationaltradecanleadto

increasesin

A.consumerwelfareonlyifoutputofbothproductsisincreased.

B.outputofbothproductsandconsumerwelfareinbothcountries.

C.totalproductionofbothproductsbutnotconsumerwelfarein

bothcountries

D.consumerwelfareinbothcountriesbutnottotalproductionof

bothproducts.

E.Noneoftheabove.

17.Asaresultoftrade,specializationintheRicardianmodeltendstobe

A.completewithconstantcostsandwithincreasingcosts.

B.completewithconstantcostsandincompletewithincreasingcosts.

C.incompletewithconstantcostsandcompletewithincreasingcosts.

D.incompletewithconstantcostsandincompletewithincreasing

costs.

E.Noneoftheabove.

18.AnationengagingintradeaccordingtotheRicardianmodelwillfindits

consumptionbundle

A.insideitsproductionpossibilitiesfrontier.

R.onitsproductionpossibilitiesfrontier.

C.outsideitsproductionpossibilitiesfrontier.

D.insideitstrade-partner'sproductionpossibilitiesfrontier.

E.onitstrade-partner'sproductionpossibilitiesfrontier.

19.IntheRicardianmodel,ifacountry'stradeisrestricted,thiswillcauseall

exceptwhich?

A.Limitspecializationandthedivisionoflabor.

B.Reducethevolumeoftradeandthegainsfromtrade

C.Causenationstoproduceinsidetheirproductionpossibilities

curves

D.Mayresultinacountryproducingsomeoftheproductofits

comparativedisadvantage

E.Noneoftheabove.

20.Ifaverysmallcountrytradeswithaverylargecountryaccordingtothe

Ricardianmodelthen

A.thesmallcountrywillsufferadecreaseineconomicwelfare.

B.thelargecountrywillsufferadecreaseineconomicwelfare.

C.thesmallcountrywillenjoygainsfromtrade.

D.thelargecountrywillenjoygainsfromtrade.

E.Noneoftheabove.

21.Iftheworldtermsoftradeforacountryaresomewherebetweenthe

domesticcostratioofHandthatofF,then

A.countryHbutnotcountiyFwillgainfromtrade.

B.countryHandcountryFwillbothgainfromtrade.

C.neithercountryHnorFwillgainfromtrade.

D.onlythecountrywhosegovernmentsubsidizesitsexportswill

gain.

E.Noneoftheabove.

22.IftheworldtermsoftradeequalthoseofcountryF,then

A.countryHbutnotcountryFwillgainfromtrade.

B.countryHandcountryFwillbothgainfromtrade.

C.neithercountryHnorFwillgainfromtrade.

D.onlythecountrywhosegovernmentsubsidizesitsexportswill

gain.

E.Noneoftheabove.

23.Iftheworldtermsoftradeequaltlioseofcountry,Fthen

A.countryHbutnotcountryFwillgainfromtrade.

B.countryHandcountryFwillbothgainfromtrade.

C.neithercountryHnorFwillgainfromtrade.

D.onlythecountrywhosegovernmentsubsidizesitsexportswill

gain.

E.Noneoftheabove.

24.Ifaproductionpossibilitiesfrontierisbowedout(concavetotheorigin),

thenproductionoccursunderconditionsof

A.constantopportunitycosts.

B.increasingopportunitycosts.

C.decreasingopportunitycosts.

D.infiniteopportunitycosts.

E.Noneoftheabove.

25.Iftwocountrieshaveidenticalproductionpossibilityfrontiers,thentrade

betweenthemisnotlikelyif

A.theirsupplycurvesareidentical.

B.theircostfunctionsareidentical.

C.theirdemandconditionsidentical.

D.theirincomesareidentical.

E.Noneoftheabove.

26.Iftwocountrieshaveidenticalproductionpossibilityfrontiers,thentrade

betweenthemisnotlikelyif

A.theirsupplycurvesareidentical.

B.theircostfunctionsareidentical.

C.theirdemandfunctionsdiffer.

D.theirincomesareidentical.

E.Noneoftheabove.

27.Theearlieststatementoftheprincipleofcomparativeadvantageis

associatedwith

A.DavidHume.

B.DavidRicardo.

C.AdamSmith.

D.EliHeckscher.

E.BertilOhlin.

28.Ifonecountry'swagelevelisveryhighrelativetotheother's(the

relativewageexceedingtherelativeproductivityratios),theniftheyboth

usethesamecurrency

A.neithercountryhasacomparativeadvantage.

B.onlythelowwagecountryhasacomparativeadvantage.

C.onlythehighwagecountryhasacomparativeadvantage.

D.consumerswillstillfindtradeworthwhilefromtheirperspective.

E.Noneoftheabove.

29.Ifonecountry'swagelevelisveryhighrelativetotheothefs(therelative

wageexceedingdierelativepioductivityratios),then

A.itisnotpossiblethatproducersineachwillfindexportmarkets

profitable.

B.itisnotpossiblethatconsumersinbothcountrieswillenhance

theirrespectivewelfaresthroughimports.

C.itisnotpossiblethatbothcountrieswillfindgainsfromtrade.

D.itispossiblethatbothwillenjoytheconventionalgainsfrom

trade.

E.Noneoftheabove.

3().TheRicardianmodelisbasedonallofthefollowingexcept

A.onlytwonationsandtwoproducts.

B.nodiminishingreturns.

C.laboristheonlyfactorofproduction.

D.productqualityvariesamongnations.

E.Noneoftheabove.

31.Ricardo'soriginaltheoryofcomparativeadvantageseemedoflimited

real-worldvaluebecauseitwasfoundedonthe

A.labortheoryofvalue.

B.capitaltlieoryofvalue.

C.landtheoryofvalue.

D.entrepreneurtheoryofvalue.

E.Noneoftheabove.

32.AccordingtoRicardo,acountrywillhaveacomparativeadvantageinthe

productinwhichits

A.laborproductivityisrelativelylow.

B.laborproductivityisrelativelyhigh.

C.labormobilityisrelativelylow.

D.labormobilityisrelativelyhigh.

E.Noneoftheabove.

33.Inatwo-country,two-productworld,thestatement"Germanyenjoysa

comparativeadvantageoverFranceinautosrelativetoships"is

equivalentto

A.FrancehavingacomparativeadvantageoverGermanyinships.

B.FrancehavingacomparativedisadvantagecomparedtoGermany

inautosandships.

C.GermanyhavingacomparativeadvantageoverFranceinautos

andships.

D.FrancehavingnocomparativeadvantageoverGermany.

E.Noneoftheabove.

34.Assumethatlaboristheonlyfactorofproductionandthatwagesinthe

UnitedStatesequal$20perhourwhilewagesinJapanare$1()perhour.

ProductioncostswouldbelowerintheUnitedStatesascomparedto

Japanif

A.U.S.laborproductivityequaled40unitsperhourandJapan's15

unitspeihour.

B.U.S.productivityequaled30unitsperhourwhereasJapan'swas

20.

C.U.S.laborproductivityequaled20andJapan's30.

D.U.S.laborproductivityequaled15andJapan's25unitsperhour.

E.Noneoftheabove.

35.IftheUnitedStates'productionpossibilityfrontierwasflattertothe

widgetaxis,whereasGermany'swasflattertothebutteraxis,weknow

that

A.theUnitedStateshasnocomparativeadvantage

B.Germanyhasacomparativeadvantageinbutter.

C.theU.S.hasacomparativeadvantageinbutter.

D.Notenoughinformationisgiven.

E.Noneoftheabove.

36.SupposetheUnitedStates*productionpossibilityfrontierwasflatterto

thewidgetaxis,whereasGermany'swasflattertothebutteraxis.We

nowlearnthattheGermanmarkissharplydepreciatedagainsttheU.S.

dollar.Wenowknowthat

A.theUnitedStateshasnocomparativeadvantage

B.Germanyhasacomparativeadvantageinbutter.

C.theUnitedStateshasacomparativeadvantageinbutter.

D.Notenoughinformationisgiven.

E.Noneoftheabove.

37.SupposetheUnitedStates*productionpossibilityfrontierwasflatterto

thewidgetaxis,whereasGermany'swasflattertothebutteraxis.We

nowlearnthattheGermanwagedoubles,butU.S.wagesdonotchange

atall.Wenowknowthat

A.theUnitedStateshasnocomparativeadvantage.

B.Germanyhasacomparativeadvantageinbutter.

C.theUnitedStateshasacomparativeadvantageinbutter.

D.Notenoughinformationisgiven.

E.Noneoftheabove.

EssayQuestions

1.ManycountriesinSub-SaharanAfricahaveverylowlaborproductivities

inmanysectors,inmanufacturingandagriculture.Theyoftendespairof

eventryingtoattempttobuildtheirindustriesunlessitisdoneinan

autarkiccontext,behindprotectionistwallsbecausetheydonotbelieve

theycancompetewithmoreproductiveindustriesabroad.Discussthis

issueinthecontextoftheRicardianmodelofcomparativeadvantage.

2.In1975,wagelevelsinSouthKoreawereroughly5%ofthoseinthe

UnitedStates.ItisobviousthatiftheUnitedStateshadallowedKorean

goodstobefreelyimportedintotheUnitedStatesatthattime,thiswould

havecauseddevastationtothestandardoflivingintheUnited

States.,becausenoproducerinthiscountrycouldpossiblycompetewith

suchlowwages.DiscussthisassertioninthecontextoftheRicardian

modelofcomparativeadvantage.

3.TheevidencecitedinthechapterusingtheexamplesoftheEastAsia

NewIndustrializingCountriessuggeststhatasinternational

productivitiesconverge,sodointernationalwagelevels.Whydoyou

supposethishappenedfortheEastAsianNICs?Inlightofyouranswer,

whatdoyouthinkislikelytohappentotherelativewages(relativeto

thoseintheUnitedStates)ofChinainthecomingdecade?Explainyour

reasoning.

4.Whenweexaminethe2Good2CountryversionoftheRicardianmodel

ofcomparativeadvantage,wenotethatcomparativeadvantageistotally

determinedbyphysicalproductivityratios.Changesinwageratesin

eithercountrycannotaffectthesephysicallydeterminedcomparative

advantages,andhencecannotaffect,whichproductwillbeexportedby

whichcountry.However,whenmorethan2goodsareaddedtothe

model(stillwith2countries),changesinwageratesinoneortheother

countrycaninfactdeterminewhichgoodorgoodseachofthecountries

willexport.Howcanyouexplainthisanomaly?

5.AnexaminationoftheRicardianmodelofcomparativeadvantageyields

theclearresultthattradeis(potentially)beneficialforeachofthetwo

tradingpartnerssinceitallowsforanexpandedconsumptionchoicefor

each.However,fortheworldasawholetheexpansionofproductionof

oneproductmustinvolveadecreaseintheavailabilityoftheother,so

thatitisnotclearthattradeisbetterfortheworldasawholeas

comparedtoaninitialsituationofnon-trade(butefficientproductionin

eachcountry).Arethereinfactgainsfromtradefortheworldasawhole?

Explain.

Quantitative/GraphingProblems

1.Giventhefollowinginformation:

UnitLaborRequirements

ClothWidgets

Home100200

Foreign6030

WhatistheopportunitycostofClothintermsofWidgetsinForeign?

2.Giventhefollowinginformation:

UnitLaborRequirements

ClothWidgets

Home100200

Foreign6030

Ifthesetwocountriestradethesetwogoodsinthecontextofthe

Ricardianmodelofcomparativeadvantage,thenwhatisthelowerlimit

oftheworldequilibriumpriceofwidgets?

3.Giventhefollowinginformation:

UnitLaborRequirements

ClothWidgets

Home100200

Foreign6030

Ifthesetwocountriestradethesetwogoodswitheachotherinaccording

totheRicardianmodelofcomparativeadvantage,whatisthelowerlimit

forthepriceofcloth?

4.Giventhefollowinginformation:

UnitsProducedbyOneWorker/Hour

ClothWidgets

Home10()200

Foreign6030

WhatistheopportunitycostofclothintermsofWwdgetsinForeign?

5.Giventhefollowinginformation:

UnitsProducedbyOneWorker/Hour

ClothWidgets

Home100200

Foreign6030

Ifthesetwocountriestradethesetwogoodswitheachotherinthe

followingtheRicardianmodelofcomparativeadvantage,thenwhatis

thelowerlimitfortheworldequilibriumpriceofcloth?

1.Homehas1200unitsoflaboravailable.Itcanproducetwogoods,applesandbananas.The

unitlaborrequirementinappleproductionis3,whileinbananaproductionitis2.

a.GraphHome'sproductionpossibilityfrontier.

b.Whatistheopportunitycostofapplesintermsofbananas?

c.Intheabsenceoftrade,whatwouldthepriceofapplesintermsofbananasbe?Why?

2.Homeisasdescribedinproblem1.Thereisnowalsoanothercountry,Foreign,withalabor

forceof800.Foreign'sunitlaborrequirementinappleproductionis5,whileinbanana

productionitis1.

a.GraphForeign'sproductionpossibilityfrontier.

b.Constructtheworldrelativesupplycurve.

3.Nowsupposeworldrelativedemandtakesthefollowingform:Demandforapples/demand

forbananas=priceofbananas/priceofapples

a.Graphtherelativedemandcurvealongwiththerelativesupplycurve.

b.Whatistheequilibriumrelativepriceofapples?

c.Describethepatternoftrade.

d.ShowthatbothHomeandForeigngainfromtrade.

4.Supposethatinsteadof1200workers,Homehad2400.Findtheequilibriumrelativeprice.

Whatcanyousayabouttheefficiencyofworldproductionandthedivisionofthegainsfrom

tradebetweenHomeandForeigninthiscase?

5.SupposethatHomehas2400workers,buttheyareonlyhalfasproductiveinbothindustriesas

wehavebeenassuming.Constructtheworldrelativesupplycurveanddeterminetheequilibrium

relativeprice.Howdothegainsfromtradecomparewith(hoseinthecasedescribedinproblem

4?

6.“KoreanworkersearnonlyS2.50anhour;ifweallowKoreatoexportasmuchasitlikesto

theUnitedStates,ourworkerswillbeforceddowntothesamelevel.Youcan'timporta$5shirt

withoutimportingthe$2.50wagethatgoeswithit."Discuss.

7.请对以下观点加以评价：

(1)只有当一个国家的生产率到达足以在国际竞争中立足的水平时，它才能从自由贸易

中获益；

(2)加果来自外国的竞争是建立在低工资的根底上，那么这种竞争是不公平的，而且会

损害其他参与竞争的国家；

(3)如果一个国家的工人比其他国家工人的工资低，那么贸易就会使这个国家受到剥削

并使福利恶化。

8.用标准的李嘉图假设，分析如下模型：

表1单位产品劳动投入

奶酪葡萄酒

本国a,r=10小时7磅a,.«=15小时/加仑

外国&.C*二4小时/磅aL«*=10小时/加仑

假设本国共拥有3000万工时的劳动量，而外国共有2000万工时的劳动量。

a.哪个国家在葡萄酒的生产上具有绝对优势？哪个国家在奶酪的生产上具有绝对优势？

b.哪个国家在葡萄酒的生产上具有比拟优势？哪个国家在奶酪的生产上具有比拟优势？

c.在开放贸易后，两个国家各出口何种商品？如果均衡国际价格比率是每磅奶酪1/2

瓶葡萄酒，各国的生产会发生什么变化？

9.实际工资的含义是每小时劳动的报酬所具有的购置力。用每种产品表示，就是指一个

工人用他1小时劳动的报酬所能买到的该产品的单位数量。在李嘉图模型中，对于某工人

所生产的任何产品来说，他只是根据其劳动生产率得到报酬，这就是他的以这种产品表示

的实际工资。请结合以下表格答复以下问题。

表2单位产品劳动投入

奶酪葡萄酒

本国&C二1小时/磅ax2小时/加仑

外国aic*=6小时/磅演下*=3小时/加仑

a.在无贸易条件下，本国用各种商品表示的劳动的实际工资分别是多少？外国呢？哪个

国家劳动的实际工资更高？

b.假定在自由贸易条件下，均衡的价格比率为1,本国用奶酪表示的实际工资是多少？

国际贸易后，本国用葡萄酒表示的新的实际工资是多少？这说明本国的贸易收益状况

如何？外国用葡萄酒表示的实际工资是多少？国际贸易后，外国用奶酪表示的新的实

际工资是多少？这说明外国的贸易收益状况如何？

c.在自由贸易情况下，哪个国家劳动的实际工资比拟高？绝对优势的重要性表达在何

处？

10.我们重点讨论了只包含两个国家的例子。假定有许多国家能生产两种产品，每个国家

都只有一种生产要素：劳动。在这种情况下，贸易模式和生产模式会怎样(提示：画出世

界相对供给曲线)？

11.在李嘉图模型中，如果A国在两种产品上都具有绝对优势，那么贸易后A国的名义工

资水平肯定高于B国。这句话对吗？请评论。

12.假设某一国家拥有20000万单位的劳动，才、V产品的单位产出所要求的劳动投入分

别为5个单位和4个单位，试确定生产可能性边界方程。如果1的国际相对价格为

2,该国的进口数量为2000个单位，试确定该国的出口量，并在图中画出贸易三角形。

13.如果两国各在某一商品上具有绝对优势，那么两国在相应的商品上也必然具有比拟优

势，这句话对吗？请评论。

Chapter5:SpecificFactorsandIncomeDistribution

MultipleChoiceQuestions

1.Internationaltradehasstrongeffectsonincomedistributions.Therefore,

internationaltrade

A.isbeneficialtoeveryoneinbothtradingcountries.

B.willtendtohurtonetradingcountry.

C.willtendtohurtsomegroupsineachtradingcountry.

D.willtendtohurteveryoneinbothcountries.

E.willbebeneficialtoallthoseengagedininternationaltrade.

2.Factorstendtobespecifictocertainusesandproducts

A.incountrieslackingcomparativeadvantage.

B.intheshortrun.

C.incapital-intensiveindustries.

D.inlabor-intensiveindustries.

E.incountrieslackingfairlaborlaws.

3.InaneconomydescribedbytheSpecificFactorsModel,theproduction

possibilityfrontierwillbe

A.linear.

B.concavetotheorigin.

C.convextotheorigin.

D.parabolicwithoneroot.

E.collapsedtoapoint.

4.Atthepointofproduction,theproductionpossibilityfrontierwillbe

tangentto

A.theorigin.

B.alinewhoseslopeistherelativequalityofthetwogoods.

C.alinewhoseslopeistherelativequantityofthetwogoods.

D.alinewhoseslopeistherelativepriceofthetwogoods.

E.Noneoftheabove.

5.Ifthepriceofthecapitalintensiveproductrisesmorethandoestheprice

ofthelandintensiveproduct,then

A.demandwillshiftawayfromthecapital-intensiveproduct,andits

productionwilldecrease.

B.demandwillshiftawayfromthecapital-intensiveproduct,andits

productionwilldecreaserelativetothatofthelandintensive

product.

C.theproductionofthecapital-intensiveproductwillindeed

decrease,butnotforthereasonsmentionedinAorB.

D.thecountriesexportingthecapital-intensivegoodwillloseits

comparativeadvantage.

E.Noneoftheabove.

6.Ifthepriceofthecapitalintensiveproductrises,wageswill

A.risebutbylessthanthepriceofthecapital-intensiveproduct.

B.risebymorethantheriseinthepriceofthecapital-intensive

product.

C.remainproportionallyequaltothepriceofthecapital-intensive

product.

D.fall,sincehiglierpricescauselessdemand.

E.Noneoftheabove.

7.IfAustraliahasrelativelymorelandperworker,andBelgiumhas

relativelymorecapitalperworker,theniftradeweretoopenupbetween

thesetwocountries,

A.therelativepriceofthecapital-intensiveproductwouldrisein

Australia.

B.theworldpriceoftheland-intensiveproductwouldbehigherthan

ithadbeeninBelgium.

C.theworldpriceofthelandintensiveproductwouldhehigherthan

ithadbeeninAustralia.

D.therelativepriceofthelandintensiveproductwouldrisein