4. The Leontief study testing the Heckscher-Ohlin theory showed thata) The US exported capital-intensive goods and imported labour-intensivegoods.b) The US exported labour-intensive goods and imported labour-intensivegoods.c) Even though the US was a capital abundant nation, it exported labourintensive goods.d) The US was a capital abundant nation and therefore, exported capitalintensive goods.5. Offer curves tell usa) The demand and supply of both goods at different relative pricesb) The demand for import good only at different relative prices.c) The supply of export good at different relative prices.d) None of the above.6. In autarky, the quantities produced and consumed by a nation will bedetermined by:a) The point at which the marginal rate of substitution equals the marginalrate of transformation.b) The point at which the community indifference curve is tangent with theproduction possibilities frontier.c) The point at which welfare is maximized given the existing domesticresources.d) All of the above answers are correct.CHOOSE ONE ANSWER ONLY.

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Question

4. The Leontief study testing the Heckscher-Ohlin theory showed that
a) The US exported capital-intensive goods and imported labour-intensive
goods.
b) The US exported labour-intensive goods and imported labour-intensive
goods.
c) Even though the US was a capital abundant nation, it exported labour
intensive goods.
d) The US was a capital abundant nation and therefore, exported capital
intensive goods.
5. Offer curves tell us
a) The demand and supply of both goods at different relative prices
b) The demand for import good only at different relative prices.
c) The supply of export good at different relative prices.
d) None of the above.
6. In autarky, the quantities produced and consumed by a nation will be
determined by:
a) The point at which the marginal rate of substitution equals the marginal
rate of transformation.
b) The point at which the community indifference curve is tangent with the
production possibilities frontier.
c) The point at which welfare is maximized given the existing domestic
resources.
d) All of the above answers are correct.
CHOOSE ONE ANSWER ONLY.

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