Question 1

In the long run, which of the following explains why
Are there no changes to returns to capital and wages
When FDI or labor immigration occurs?

Accepted Answer

A)  World prices of output are unchanged.
B)  Marginal productivities are unchanged.
C)  There is no change in the capital­labor ration in either industry.
D)  World prices of output and marginal productivities are unchanged.

Question 2

For the sending country, what will be the long­run
Effects of immigration on wages and the return to
Capital?

Accepted Answer

A)  The wage will increase, and the return to capital will decrease.
B)  The wage will decrease, and the return to capital will increase.
C)  Both the wage and the return to capital will increase.
D)  There will be no change in the wage and the return to capital.

Question 3

What is the likely attitude of owners of capital and land
Toward immigration?

Accepted Answer

A)  They are likely to support closing the borders to foreign labor.
B)  They are likely to support more open borders and an influx of workers.
C)  They are not likely to worry about immigration issues,
D)  They are likely to reject legislation easing rules on immigration.

Question 4

If we use the short­run (specific­factors)  model to
Model FDI movement from one nation to another, then
Wages in the recipient nation:

Accepted Answer

A)  decline absolutely.
B)  rise as a result of an increase in the MP of labor.
C)  are not affected.
D)  decline relatively, as capital competes with labor but not absolutely.

Question 5

Consider a hypothetical economy in which only
Computers and shoes are produced.If two resources
Are being used, labor and capital, then any increase in
Immigration in the long run:

Accepted Answer

A)  will decrease wages in the shoe industry.
B)  will decrease wages in the computer industry.
C)  will increase wages in the shoe industry.
D)  will keep wages constant because marginal products do not change.

Question 6

As FDI flows into a nation, which of the following will
Happen to the marginal product of labor in the short
Run?

Accepted Answer

A)  It will rise.
B)  It will fall.
C)  It will not change.
D)  It will first fall then rise.

Question 7

The large­scale labor migration that occurred during
1870 to 1913 from Europe to America ____ wages in
The destination nations and ____ wages in the source
Nations, thus leading to _____ of wages between the
Regions.

Accepted Answer

A)  lowered; raised; convergence
B)  raised; raised; divergence
C)  lowered; lowered; divergence
D)  raised; lowered; convergence

Question 8

"Greenfield investment" is defined as:

Accepted Answer

A)  a takeover of an existing company.
B)  the construction of a new factory in a foreign company.
C)  the hiring of at least 25 workers in a foreign company.
D)  renting space in an office building.

Question 9

In the long run (the HO model) , immigration will lead
To:

Accepted Answer

A)  an increase in the price of both the labor­intensive and the capital­intensive goods in the receivingCountry.
B)  an increase in the price of the labor­intensive good and a decrease in the price of the capital­intensiveGood in the receiving country.
C)  a decrease in the price of both the labor­intensive and the capital­intensive goods in the receivingCountry.
D)  no change in the price of either the labor­intensive or the capital­intensive good in the receiving country.

Question 10

What percentage limit per nationality does the U.S.
government impose for granting permanent visas?

Accepted Answer

The answer of What percentage limit per nationality does the...

Question 11

What three principles does Giovanni Peri describe as
important to the on­going debate on immigration to
the United States?

Accepted Answer

Principle One: Simplification of the man...

Question 12

The Mariel boatlift of Cuban immigrants into Miami
Caused the:

Accepted Answer

A)  population of unskilled workers in Miami to decline.
B)  population of skilled workers in Miami to decline.
C)  supply of labor to increase, but it did not decrease the wages.
D)  wages of all workers to decline.

Question 13

In the Heckscher­Ohlin model, which of the following is
The term used to describe the absorption of an increase
In a factor with changes in sector outputs without any
Change in factor prices?

Accepted Answer

A)  factor price insensitivity
B)  factor price equalization
C)  factor price theorem
D)  factor price absorption

Question 14

In the long run, immigration will lead to a rightward
Shift in the receiving country's production possibilities
Frontier.As a result, this shift will:

Accepted Answer

A)  favor the labor­intensive good.
B)  favor the capital­intensive good.
C)  equally favor the labor­intensive and the capital­ intensive good.
D)  cause an increase in the production of the labor­ intensive good and a decrease in the capital­intensiveGood.

Question 15

When the supply of labor increases, according to the
Specific­factors model, which of the following is NOT
Likely to happen?

Accepted Answer

A)  The number of workers employed will increase.
B)  The wages for workers will decline.
C)  The marginal product of labor shifts to the right.
D)  The overall wage in the economy increases in the short run.

Question 16

Which of the following is NOT a long­run impact of
Labor immigration?

Accepted Answer

A)  Production of labor­intensive industries will increase.
B)  Production of capital­intensive industries will decrease.
C)  There will be a shift of labor and capital into labor­ intensive industries.
D)  The PPF will shift inward.

Question 17

How can we model long­run FDI flows using a model
Similar to the long­run effects of long­run labor
Migration?

Accepted Answer

A)  Use a simple supply­and­demand approach.
B)  Use the Ricardian comparative advantage model.
C)  Use the Heckscher­Ohlin model with the assumption that capital can migrate.
D)  Use the Rybczynski theorem.

Question 18

According to economists, which of the following
Statements about international capital mobility is
CORRECT?

Accepted Answer

A)  International resource mobility has had no effect upon world GDP.
B)  International resource mobility has had a negative effect upon world GDP.
C)  International resource mobility has had a positive effect upon world GDP.
D)  International resource mobility has had such a small effect upon world GDP that it is not worthMeasuring.

Question 19

According to the U.S.Department of Commerce, a
Foreign direct investment inflow to the United States
Occurs whenever a foreign company acquires ____ or
More of a U.S.firm.

Accepted Answer

A)  10%
B)  25%
C)  51%
D)  100%

Question 20

As of 2005 the European Union had:

Accepted Answer

A)  5 members.
B)  15 members.
C)  25 members.
D)  40 members.

Exam 5: Movement of Labor and Capital Between Countries

The large­scale labor migration that occurred during 1870 to 1913 from Europe to America ____ wages in The destination nations and ____ wages in the source Nations, thus leading to _____ of wages between the Regions.

Correct AnswerverifiedShow Answer

What is the likely attitude of owners of capital and land Toward immigration?

Correct AnswerverifiedShow Answer

As FDI flows into a nation, which of the following will Happen to the marginal product of labor in the short Run?

Correct AnswerverifiedShow Answer

In the long run (the HO model) , immigration will lead To:

Correct AnswerverifiedShow Answer

Which of the following is NOT a long­run impact of Labor immigration?

Correct AnswerverifiedShow Answer

If we use the short­run (specific­factors) model to Model FDI movement from one nation to another, then Wages in the recipient nation:

Correct AnswerverifiedShow Answer

In the long run, which of the following explains why Are there no changes to returns to capital and wages When FDI or labor immigration occurs?

Correct AnswerverifiedShow Answer

Consider a hypothetical economy in which only Computers and shoes are produced.If two resources Are being used, labor and capital, then any increase in Immigration in the long run:

Correct AnswerverifiedShow Answer

According to the U.S.Department of Commerce, a Foreign direct investment inflow to the United States Occurs whenever a foreign company acquires ____ or More of a U.S.firm.

Correct AnswerverifiedShow Answer

What three principles does Giovanni Peri describe as important to the on­going debate on immigration to the United States?

Correct AnswerverifiedPrinciple One: Simplification of the man...View AnswerShow Answer

In the Heckscher­Ohlin model, which of the following is The term used to describe the absorption of an increase In a factor with changes in sector outputs without any Change in factor prices?

Correct AnswerverifiedShow Answer

What percentage limit per nationality does the U.S. government impose for granting permanent visas?

Correct AnswerverifiedShow Answer

How can we model long­run FDI flows using a model Similar to the long­run effects of long­run labor Migration?

Correct AnswerverifiedShow Answer

When the supply of labor increases, according to the Specific­factors model, which of the following is NOT Likely to happen?

Correct AnswerverifiedShow Answer

According to economists, which of the following Statements about international capital mobility is CORRECT?

Correct AnswerverifiedShow Answer

The Mariel boatlift of Cuban immigrants into Miami Caused the:

Correct AnswerverifiedShow Answer

"Greenfield investment" is defined as:

Correct AnswerverifiedShow Answer

In the long run, immigration will lead to a rightward Shift in the receiving country's production possibilities Frontier.As a result, this shift will:

Correct AnswerverifiedShow Answer

As of 2005 the European Union had:

Correct AnswerverifiedShow Answer

For the sending country, what will be the long­run Effects of immigration on wages and the return to Capital?

Correct AnswerverifiedShow Answer

The largescale labor migration that occurred during 1870 to 1913 from Europe to America wages in The destination nations and wages in the source Nations, thus leading to _ of wages between the Regions.

Correct Answer
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Which of the following is NOT a longrun impact of Labor immigration?

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If we use the shortrun (specificfactors) model to Model FDI movement from one nation to another, then Wages in the recipient nation:

Correct Answer
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What three principles does Giovanni Peri describe as important to the ongoing debate on immigration to the United States?

Correct Answer
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Principle One: Simplification of the man...
View Answer

In the HeckscherOhlin model, which of the following is The term used to describe the absorption of an increase In a factor with changes in sector outputs without any Change in factor prices?

Correct Answer
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Correct Answer
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How can we model longrun FDI flows using a model Similar to the longrun effects of longrun labor Migration?

Correct Answer
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When the supply of labor increases, according to the Specificfactors model, which of the following is NOT Likely to happen?

Correct Answer
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For the sending country, what will be the longrun Effects of immigration on wages and the return to Capital?

Correct Answer
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