Question :
21) In the four-quadrant diagram of the specific factors model, : 1303489
21) In the four-quadrant diagram of the specific factors model, the graph in the upper left quadrant is a country’s
A) production function for food.
B) production possibility frontier.
C) labor allocation constraint.
D) production function for cloth.
E) labor supply curve.
22) In the four-quadrant diagram of the specific factors model, the graph in the upper right quadrant is a country’s
A) labor allocation constraint.
B) production possibility frontier.
C) production function for food.
D) production function for cloth.
E) labor supply curve.
23) The slope of a country’s production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to ________ and it ________ as more cloth is produced.
A) -MPLF/MPLC; becomes steeper
B) -MPLF/MPLC; becomes flatter
C) -MPLF/MPLC; is constant
D) -MPLC/MPLF; becomes steeper
E) -MPLC/MPLF; is constant
24) The slope of a country’s production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the Ricardian model is equal to ________ and it ________ as more cloth is produced.
A) -MPLF/MPLC; is constant
B) -MPLF/MPLC; becomes steeper
C) -MPLF/MPLC; becomes flatter
D) -MPLC/MPLF; becomes steeper
E) -MPLC/MPLF; is constant
25) Under perfect competition, the equilibrium price of labor used to produce cloth will be equal to
A) the marginal product of labor in the production of cloth times the price of cloth.
B) the average product of labor in the production of cloth times the price of cloth.
C) the ratio of the marginal product of labor in the production of cloth to the marginal product of labor in the production of food times the ratio of the price of cloth. to the price of food.
D) the slope of the production possibility frontier.
E) the price of cloth divided by the marginal product of labor in the production of cloth.
26) When a country’s labor market is in equilibrium in the specific factors model, the wage rate
A) will be the same in both sectors.
B) will be higher in the export-competing sector.
C) will be higher in the import-competing sector.
D) will be higher in the sector where product price is higher.
E) will be higher in the sector where product price is lower.
27) In the specific factors model, which of the following will increase the quantity of labor used in food production?
A) an increase in the price of food relative to that of cloth
B) an increase in the price of cloth relative to that of food
C) a decrease in the price of labor
D) an equal percentage decrease in the price of food and cloth
E) an equal percentage increase in the price of food and cloth
28) In the specific factors model, which of the following will increase the quantity of labor used in cloth production?
A) an increase in the price of cloth relative to that of food
B) an increase in the price of food relative to that of cloth
C) a decrease in the price of labor
D) an equal percentage decrease in the price of food and cloth
E) an equal percentage increase in the price of food and cloth
29) In the specific factor model, the effect of an increase in the productivity of labor in the production of cloth will cause a(an) ________ in the quantity of labor used to produce cloth, a(an) ________ in the quantity of labor used to produce food and a(an) ________ in the wage rate.
A) increase; decrease; increase
B) decrease; increase; increase
C) increase; decrease; decrease
D) decrease; increase; no change
E) increase; increase; no change
30) In the specific factor model, the effect of an increase in the productivity of labor in the production of food will cause a(an) ________ in the quantity of labor used to produce cloth, a(an) ________ in the quantity of labor used to produce food and a(an) ________ in the wage rate.
A) decrease; increase; increase
B) increase; decrease; increase
C) increase; decrease; decrease
D) decrease; increase; no change
E) increase; increase; no change
