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Matching Quiz
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Match the terms on the left with the definition in the column on the right




Match:
1


Stolper-Samuelson theorem

2


factor-price equalization theorem

3


Leontief Paradox

4


neutral factor

5


magnification effect

6


factor specialization

A)Given certain conditions and assumptions, free trade will equalize not only commodity prices but also the prices of individual factors between the two countries, so that all laborers will earn the same wage rate and all units of land will earn the same rental return in both countries even if factors cannot migrate between countries.
B)the degree of concentration of a factor in the production of a good.
C)Given certain conditions and assumptions, an event that changes product prices in a country unambiguously raises the real returns to the factor used intensively in the rising-price industry and lowers the real returns to the factor used intensively in the falling-price industry in the long run, regardless of which good the sellers of the two factors prefer to consume.
D)questioned Heckscher-Ohlin (H-O) theory
E)a factor of production that is the same share of the final value of all goods produced in a country.
F)a factor's price changes by a greater percentage than the change in the price of the good that caused the factor price change.







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