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Multiple Choice Quiz
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1

Growth in production leading to expansion in the production of the imported good and a simultaneous decrease in production of the export good is known as __________ production effect.
A)an ultra-protrade
B)a protrade
C)an ultra-antitrade
D)an antitrade
E)a neutral
2

When the income elasticity of demand for imports is positive, economic growth has
A)no effect on international trade.
B)an ultra-antitrade effect.
C)a protrade effect.
D)the Barshevsky effect.
3

Economic growth that leads to antitrade or ultra-antitrade effects implies
A)a Leontief statistic above 1.
B)an income elasticity of demand for imports of less than 1.
C)a marginal propensity to import of less than 0.
D)an income elasticity of demand for imports greater than 1.
4

Evidence from industrialized countries generally suggests that, from the mid-1960s to the mid-1980s,
A)capital was gradually substituted for labor.
B)labor was gradually substituted for capital.
C)the capital-labor ratio gradually fell.
D)b and c are both correct.
5

An outward expansion of the PPF that is disproportionately larger for the labor-intensive good is most likely to result from
A)growth in the labor force only.
B)growth in capital only.
C)commodity-specific technological change.
D)factor-neutral growth.
6

Suppose that there are two factors of production: land and labor. An observation that growth in land leads to an absolute expansion in the production product that uses land intensively would indicate that the
A)Heckscher-Ohlin theorem does not hold.
B)Rybczynski theorem does not hold.
C)Heckscher-Ohlin theorem holds.
D)Rybczynski theorem holds.
7

This chapter suggests that
A)China's rapid growth has had a negative impact on other East Asian countries.
B)China's rapid growth has had a positive impact on other East Asian countries.
C)international trade generally leads to immiserizing growth.
D)none of the above.
8

Box 4 suggests that, for this sample of countries,
A)there is a tendency for more rapid growth to be associated with an improvement in a country's terms of trade.
B)there is a tendency for more rapid growth to be associated with a deterioration in a country's terms of trade.
C)there is no particular relationship between a country's economic growth and its terms of trade.
D)terms of trade have dramatically improved since 1980.
9

If economic growth causes an increase in the consumption of the import good to rise by relatively more than the consumption of the export good, _______________ consumption effect exists.
A)an antitrade
B)an ultra-antitrade
C)a protrade
D)an ultra-protrade
10

The possibility that economic growth in a country could cause such a deterioration in that country's terms of trade that the country is worse off is known as
A)endogenous growth.
B)immiserizing growth.
C)ultra-protrade growth.
D)none of the above.





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