eco3250

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

$1,$2

$2;$1

Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States is represented by the following set of equations: QS = -25 + 10P QD = 875 - 5P In the absence of trade with the rest of the world, the consumer surplus in the United States MP3 player market is

$33,062.50

Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States is represented by the following set of equations: QS = -25 + 10P QD = 875 - 5P In the absence of international trade in MP3 players, what will be the price of MP3 players in the United States?

$60

The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. The opportunity cost of producing cheese in the United States is Labor hours to make: 1 gallon of wine: 4.00 1 pound of cheese: 1.00

0.25 gallon of wine.

Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. The number of labor hours required to produce one unit of Good X in Country A is Good x country a: 1.00 country b: 0.50 Good y country a: 0.20 country b: 0.70

Which of the following is the formula for the intra-industry trade (IIT) share in a product's total trade?

1 - [ |X - M| / (X + M)]

The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. What is the opportunity cost of producing a bushel of corn in the United Kingdom? 1 umbrella uk: 3.00 world: 2.00 1 bushel of corn uk: 1.00 world: 0.25

1/3 = 0.333

Suppose the domestic supply (QSU.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations: QSU.S. = 2P QDU.S. = 200 - 2P. Demand (QD) and supply (QS) in the rest of the world is represented by the equations: QS = P QD =160 - P. Quantities are measured in thousands and price, in U.S. dollars. In the absence of international trade, _____ thousand bicycles will be sold in the United States at a per unit price of____

100;$50

Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States is represented by the following set of equations: QS = -25 + 10P QD = 875 - 5P In the absence of international trade in MP3 players, how many MP3 players will be sold in the United States?

575

Suppose the domestic supply (QSU.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations: QSU.S. = 2P QDU.S. = 200 - 2P. Demand (QD) and supply (QS) in the rest of the world is represented by the equations: QS = P QD =160 - P. Quantities are measured in thousands and the price, in U.S. dollars. In the absence of international trade, _____ thousand bicycles will be sold in the rest of the world at a per unit price of___

80;$80

Which of the following will cause a rightward shift of the market supply curve? An increase in the product price A decrease in input prices Change in consumers' tastes An increase in national income

A decrease in input prices

Which of the following events would lead to a decrease in demand for air travel? An increase in income levels A decrease in oil prices A decrease in the number of people who are afraid to fly A decrease in rail fares

A decrease in rail fares

___ wrote the wealth of nations

Adam Smith

Which of the following is true of a constant-cost production-possibility curve? A country with a constant-cost production-possibility curve partially specializes in the production of goods when it engages in free trade with other nations. Along a constant-cost production-possibilities curve, the opportunity cost of producing more of a good is constant. A constant-cost production-possibilities curve is drawn as a positively sloped straight line. When a country engages in free trade, the constant-cost production-possibility curve shifts to the right.

Along a constant-cost production-possibilities curve, the opportunity cost of producing more of a good is constant.

Which of the following factors is most likely to lead to a decline in a country's exports? A decrease in the country's corporate taxes A decline in the country's nominal interest rate A decline in the country's input prices An appreciation of the country's currency vis-à-vis foreign currencie

An appreciation of the country's currency vis-à-vis foreign currenciesCorrect

"China is not a typical developing nation." Which of the following economic features is most likely to justify this claim? China has a high national saving rate. China has a large trade deficit with the United States. The Chinese government favors a freely floating exchange-rate policy. The government of China spends a significant portion of its revenue on national defense.

China has a high national saving rate.

China has 20 percent of the world's population and 10 percent of the world's farmable land. Which of the following will be predicted by the Heckscher-Ohlin theory if China begins to trade with other countries?

China will shift resources from the production of agricultural goods to the production of labor-intensive goods.

Which of the following statements is true about production-possibility curves? Constant-cost production-possibility curves are convex to the origin. Under free trade, bowed-out production-possibility curves are associated with partial specialization, because the opportunity cost of producing each good is constant along the curve. Increasing-cost production-possibility curves provide us with information about consumer preferences. Constant-cost production-possibility curves are straight lines and usually lead to complete specialization under free trade.

Constant-cost production-possibility curves are straight lines and usually lead to complete specialization under free trade.

If Country A has a higher ratio of labor to land than Country B, it can be inferred that

Country A can produce labor-intensive goods at lower costs than Country B.

Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. Which of the following statements is true? Good x country a: 1.00 country b: 0.50 Good y country a: 0.20 country b: 0.70

Country A has an absolute advantage in the production of Good X.

Suppose Country A and Country B are the only two countries in the world. Country A imports Good X from Country B and exports Good Y. In the absence of any transportation cost, at the world price of Good X both Country A's import demand curve and Country B's export supply curve are positively sloped. Country A's import demand curve will intersect Country B's export supply curve. Country A's import demand curve will be perfectly inelastic. Country B's export supply curve is perfectly inelastic.

Country A's import demand curve will intersect Country B's export supply curve.

The theory of comparative advantage was proposed by

David Ricardo.

The United Kingdom (UK) is composed of the following individual countries Multiple Choice - England, Scotland, Wales, and Ireland - England, Scotland, and Wales - England, Scotland, Ireland, and Northern Ireland - England, Scotland, Wales, and Northern Ireland

England, Scotland, Wales, and Northern Ireland

Which of the following can best explain the clustering of some industries, such as banking and finance in New York City and high-technology computer production in Silicon Valley?

External scale economies

Which of the following statements is true? Free trade causes contraction in the import-competing sector. Free trade causes contraction of the export-oriented sector. Free trade restricts consumption choices of domestic consumers. All domestic producers benefit when a country engages in free trade.

Free trade causes contraction in the import-competing sector.

If an individual consumes more of Good X when his/her income doubles, we can infer that the demand for Good X is perfectly inelastic. Good X is an inferior good. the individual is highly sensitive to changes in the price of Good X. Good X is a normal good.

Good X is a normal good.

Which of the following is NOT a fiscal policy? Multiple ChoiceLowering personal tax rates to influence labor supplyIncreasing tariffs to reduce importsOffering subsidies to export firmsIncreasing the money supply to expand aggregate demand

Increasing the money supply to expand aggregate demand

Which of the following is true of consumer surplus? It is used to measure the impact of a change in price on the economic well-being of the producers. It is graphically represented as the area under the equilibrium price and above the supply curve of a good. It is the difference between the value that one places on a good and the price paid for the good. It is the net gain in economic well-being associated with producing and selling the equilibrium quantity of a good.

It is the difference between the value that one places on a good and the price paid for the good.

Which of the following is a "unit-free" measure? Market supply Price elasticity of demand Producer surplus when the supply curve is vertical Consumer surplus when the demand curve is horizontal

Price elasticity of demand

Assume a two-country, two-commodity, two-input model where the following relationships hold: (K/L)U.S. > (K/L)ROW (K/L)automobiles > (K/L)shoes (K/L)U.S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes. Assume further that technology and tastes are the same in the United States and the Rest of the World. Which of the following statements is true? Production of shoes is relatively cheaper in the United States than the Rest of the World. Production of shoes is relatively labor-intensive. Production of automobiles is relatively labor-intensive. The laborers in the United States are less productive than the laborers in the Rest of the World.

Production of shoes is relatively labor-intensive.

Which of the following was NOT an argument in favor of the United Kingdom (UK) leaving the European Union (EU)? Proponents of leaving wanted greater control over immigration. Proponents of leaving wanted greater access to markets in the other EU member countries. Proponents of leaving stressed that the UK needed to reestablish British sovereignty. Proponents of leaving believed the UK paid a disproportionate share of membership fees.

Proponents of leaving wanted greater access to markets in the other EU member countries.

Which of the following is an example of arbitrage? Multiple Choice A firm sells a box of cereal at $10 when the average cost of producing it is $6. A local salon charges 5 percent more for all its services than a competing salon in the same locality. Thomas buys a new stock issued by a firm on the stock exchange. Romi buys a DVD from Walmart at $10 and sells it on eBay for $20.

Romi buys a DVD from Walmart at $10 and sells it on eBay for $20.

If a country is concerned about protecting a particular industry for national security reasons, which of the following policies is most effective from an economic standpoint?

Targeted government subsidies

Which of the following exchange rate policies was undertaken by the Chinese government in 1994?

The Chinese yuan was pegged to the U.S. dollar.

The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. Which of the following statements is true? 1 umbrella uk: 3.00 world: 2.00 1 bushel of corn uk: 1.00 world: 0.25

The United Kingdom has a comparative advantage in the production of umbrellas.

If trade corresponds to the Heckscher-Ohlin theory, which of the following is most likely to happen in the long run after a labor-abundant country engages in free trade? The capital to labor ratio used in production in the export sector will increase. The rate of unemployment in the country is most likely to increase. The rental rates of capital will increase but the wage rates will decline. The total output in the economy will decline.

The capital to labor ratio used in production in the export sector will increase.

Which of the following is an example of monetary policy? Changes in government spending on public works projects The central bank buying government bonds Changes in income tax rates Raising social security payments in response to increased inflation

The central bank buying government bonds

"Job-seeking immigration brings net economic benefits not only to the immigrants, but also to the receiving country overall." But there are winners and losers within the receiving country. Who among the following can be considered as a winner within the receiving country? The workers who compete with the immigrants for jobs The households who want to rent the same kinds of apartments the immigrants want to rent. The consumers who buy the products that the immigrants help to produce None of these options are correct.

The consumers who buy the products that the immigrants help to produce

Which of the following is an impact of increased illegal immigration on an economy? - The real wage rate of workers increases. - The demand for labor in the receiving country declines. - The rate of inflation in the receiving country increases. - The demand for government services like education and health care increases.

The demand for government services like education and health care increases.

Which of the following is most likely to be predicted by the Heckscher-Ohlin theor Countries like China will completely specialize in the production of primary products. The developing countries will mainly export labor-intensive goods. The industrialized nations will mainly export labor-intensive goods. The wage rate of the low-skilled workers will be higher in the developing countries than in the developed countries.

The developing countries will mainly export labor-intensive goods.

Which of the following is true of the gravity model?

The gravity model states that the trade flows between two countries are directly proportional to their gross domestic product (GDP).

Which of the following groups are most likely to benefit when a country engages in free trade? The manufacturers of exportable goods The producers in the import-competing industries The workers employed in the import-competing industries All the domestic producers of the country

The manufacturers of exportable goods

The price of bread will fall but the price of wine will rise in the domestic market.

The following input-requirements data are for Country A, a capital-abundant country that produces nothing but bread and wine using only capital and labor as inputs capital input 1 lb of bread = 5 1 gallon of wine = 2 Labor unout 1 lb of bread = 4 1 gallon of wine = 1 Which of the following can most reasonably be inferred for the short run after this country opens to free trade?: The wage rates in all sectors of the country will increase. The wage rates and rental rates of capital will rise in the wine industry but will fall in the bread industry. The wage rates and rental rates of capital will rise in the bread industry but will fall in the wine industry. The rental rates of capital in all sectors of the economy will decline.

The wage rates and rental rates of capital will rise in the wine industry but will fall in the bread industry.

Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. Which of the following is most likely to happen in the long run following the opening of free trade between the countries? The workers and landowners in the food industry in Beta will be better off while the workers and landowners in the drink industry will be worse off. The workers in Alpha will be better off but the landowners will be worse off. The workers in Beta will be better off while the landowners will be worse off. The workers and landowners in the food industry in Alpha will be better off while the workers and landowners in the drink industry will be worse off.

The workers in Alpha will be better off but the landowners will be worse off.

An increase in imports of clothing into the United States from India will benefit the _____ and hurt the__ U.S. consumers; Indian clothing producers. Indian consumers; Indian clothing producers. U.S. clothing producers; Indian clothing producers. U.S. consumers; U.S. clothing producers.

U.S. consumers; U.S. clothing producers.

In 2004, China had a substantial trade surplus with Multiple ChoiceBrazil.Russia.the United States.Japan.

Vineland and Moonited Republic produce wine and cheese. The opportunity cost for the production of a bottle of wine in Vineland is two pounds of cheese, and in the Moonited Republic is 2.5 pounds of cheese. Based on this information, it can be concluded that Vineland has a comparative advantage in the production of cheese and Moonited has a comparative advantage in the production of wine. based on comparative advantage trade between the two countries is not possible. Vineland has a comparative advantage in the production of wine. Vineland has an absolute disadvantage in the production of both goods.

Vineland has a comparative advantage in the production of wine.

If Country X has higher labor productivity in the production of umbrellas than the rest of the world, we would say that Country X has a(n) _____ in the production of umbrellas. comparative advantage absolute advantage absolute disadvantage comparative disadvantage

absolute advantage

ssume a two-country, two-commodity, two-input model where the following relationships hold: (K/L)U.S. > (K/L)ROW (K/L)automobiles > (K/L)shoes (K/L)U.S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes. Assume further that technology and tastes are the same in the United States and the Rest of the World. According to the Heckscher-Ohlin model, free trade between the United States and the Rest of the World would result in

an improvement in economic well-being in both the United States and the Rest of the World.

Suppose Good X is a substitute for Good Y. Everything else remaining unchanged, an increase in the price of Good Y will lead to an increase in demand for Good X. a decrease in demand for Good X. a decrease in the price of Good X. an increase in demand for Good Y.

an increase in demand for Good X.

Scale economies are said to be present when

an increase in output leads to a decrease in average cost.

If the price of a normal good is measured along the vertical axis and its quantity along the horizontal axis, an increase in the price of the good will lead to a leftward shift of the demand curve. a rightward shift of the demand curve. a downward movement along the demand curve. an upward movement along the demand curve.

an upward movement along the demand curve.

Assume a two-country, two-commodity, two-input model where the following relationships hold: (K/L)U.S. > (K/L)ROW (K/L)automobiles > (K/L)shoes (K/L)U.S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes. Assume further that technology and tastes are the same in the United States and the Rest of the World. The relationships shown in here indicate that the United States has a comparative advantage in the production of _____ while the Rest of the World has a comparative advantage in the production of

auto;shoes

One of the successes of the European Union (EU) is that banks have "passporting rights," which means that

banks in the EU can sell financial services to any EU country without regulatory barriers.

The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. The rest of the world has an absolute advantage in the production of 1 umbrella uk: 3.00 world: 2.00 1 bushel of corn uk: 1.00 world: 0.25

both corn and umbrellas

In a two-country, two-commodity model, if a country has a comparative advantage in the production of a certain good, it implies that this country

can produce this good at a lower opportunity cost than the other country.

In March 2018, the United States filed a formal complaint with the World Trade Organization (WTO) alleging that China

engaged in unfair policies and practices regarding intellectual property rights.

Suppose the domestic supply (QSU.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations: QSU.S. = 2P QDU.S. = 200 - 2P. Demand (QD) and supply (QS) in the rest of the world is represented by the equations: QS = P QD =160 - P. Quantities are measured in thousands and price, in U.S. dollars. After the opening of free trade with the rest of the world, if the world price of bicycles settles at $60, the United States will

export 40,000 bicycles

Country Y has fifteen thousand acres of land and forty-five thousand laborers, whereas the Rest of the World has one hundred thousand acres of land and two hundred thousand laborers. These countries produce a labor-intensive Good A, and a land-intensive Good B. When trade opens up between these countries, it can be inferred that Country Y will

export Good A, and import Good B.

Assume a two-country, two-commodity, and two-input model. Let the two countries in this model be the United States and the Rest of the World and the two goods being produced by each of the countries be steel and wheat. The two factors of production used in producing the goods in each country are capital and land. If the United States is capital-abundant and steel production is capital-intensive, the Heckscher-Ohlin model would predict that the United States would

export steel and import wheat.

Assume a two-country, two-commodity, and two-input model. Let the two countries in this model be the United States and the Rest of the World and the two goods being produced by each of the countries be steel and wheat. The two factors of production used in producing the goods in each country are capital and land. If the United States is capital-abundant and wheat production is land-intensive, the Heckscher-Ohlin model would predict that the Rest of the World would

export wheat and import steel.

A computer programmer working in India relocates to the United States. This is an example of

factor mobility

fall in Alpha and rise in Beta.

Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and food is relatively land-intensive. According to the Heckscher-Ohlin theory, Beta has a comparative advantage in the production of

food

In the short-run, following the opening of trade groups tied to declining sectors of the economy will suffer from lower returns. workers will suffer from lower wages, but landowners will benefit from higher rents. workers in the country can change jobs but will receive the same wage. gross output remains constant.

groups tied to declining sectors of the economy will suffer from lower returns.

Which of the following can be concluded from the relationships given below? (U.K. capital stock) < (rest of the world's capital stock) (U.K. labor supply) > (rest of the world's labor supply)

he United Kingdom is relatively labor-abundant compared to the rest of the world.

The Heckscher-Ohlin theory predicts that the opening of trade between a land-abundant country and a labor-abundant country should result in

higher wages in the labor-abundant country and higher rents in the land-abundant country.

The European Central Bank is responsible for protecting European Union member countries from unfair trade practices. implementing European Union monetary policy. assuring full employment in the European Union. the bailout of European Union countries in financial trouble.

implementing European Union monetary policy.

Suppose the domestic supply (QSU.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations: QSU.S. = 2P QDU.S. = 200 - 2P. Demand (QD) and supply (QS) in the rest of the world is represented by the equations: QS = P QD =160 - P. Quantities are measured in thousands and price, in U.S. dollars. After the opening of free trade with the United States, if the world price of the bicycles settles at $60, the rest of the world will

import 40,000 bicycles

Assume that Country X produces two goods—sugar and shoes—and that the country's production possibility curve is "bowed-out." As the country produces more sugar the opportunity cost of sugar in terms of shoes foregone will

increase

Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. If Country B transfers one labor hour from the production of Good X to the production of Good Y, total world production of Good Y will _____ by _____ unit(s). Country A Country B Good X 1.00. 0.50 Good Y 0.20. 0.70

increase; 0.7

Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. If Country A transfers one labor hour from the production of Good Y to the production of Good X, total world production of Good X will _____ by _____ unit(s). Country A Country B Good X 1.00. 0.50 Good Y 0.20. 0.70

increase; one

_____ is considered to be the least mobile factor internationally.

land

Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and food is relatively land-intensive. The no-trade wage rate relative to land rents in Alpha is _____ the relative wage rate in Beta.

less than ( alpha - labor beta - land, wages in labor abundant are less than)

The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. The United Kingdom has an absolute advantage in the production of 1 umbrella uk: 3.00 world: 2.00 1 bushel of corn uk: 1.00 world: 0.25

neither

The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. The United States has a comparative advantage in the production of 1 gallon of wine US: 4.00 France: 1.00 1 lb of cheese us: 1.00 France: 2.00

only cheese

Consider a two-country, two-commodity model. The table below shows the units of Good X and Good Y produced in Country A and Country B per labor hour. Country B has an absolute advantage in the production of Country A Country B Good X 1.00 0.50 Good Y 0.20. 0.70

only good Y

According to the factor-price equalization theorem, free trade between any two countries equalizes

product prices as well as the prices of individual factors of production between the countries.

Everything else remaining unchanged, when the price of a normal good increases, consumers probably purchase less of the good. purchase the same amount of the good. do not purchase any amount of the good. purchase more of the good.

purchase less of the good.

According to the Stolper-Samuelson theorem, an increase in the price of a country's imports will

raise the returns to the factor of production used intensively in the import-competing industry.

A country which has a higher ratio of capital to other factors of production than does the rest of the world is operating at a point inside its production-possibility curve. said to have a low capital-output ratio. relatively capital-abundant. relatively capital-scarce.

relatively capital-abundant.

In March of 2014, China's official holdings of foreign exchange reserves

rose to $4 trillion

The theory which predicts that trade occurs because of differences in the availability of factor inputs across countries and the differences in the proportions in which the inputs are used in producing different products is called

the Heckscher-Ohlin theory

The value of a country's currency, in terms of some other country's currency, is called

the exchange rate

If a firm located in a country charges high prices on its exports and earns profits on its export sales, then: the majority of gains from international trade accrue to the foreign buyers. the profit earned by the firm is not considered as a part of the exporting country's gross domestic product (GDP). the firm emerges as a natural monopolist in the long run. the high export price enhances the exporting country's terms of trade.

the high export price enhances the exporting country's terms of trade.

The value of price elasticity of demand is negative because it indicates the inverse relationship between the price offered and the quantity demanded for the good. that the changes in quantity demanded are much less compared to the changes in price for this good. the direct relationship between the price and consumer surplus from the good. that the value of the consumer surplus is negative for this good.

the inverse relationship between the price offered and the quantity demanded for the good.

Labor productivity refers to: the number of hours it takes a worker to produce one unit of output. the total numbers of hours it takes all the workers in a firm to produce a given money value of a good in one day. the money value of a good that all workers in a firm produce in one day. the number of units of output a worker can produce in one hour.

the number of units of output a worker can produce in one hour.

Assume a two-country, two-good, two-input model where the following relationships hold: (K/L)U.S. > (K/L)ROW (K/L)automobiles > (K/L)shoes (K/L)U.S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes. Assume further that technology and tastes are the same in the United States and the Rest of the World. The relationships shown here indicate that, with no trade, in the United States: the relative capital endowment is the same as in the Rest of the World. the price of shoes relative to automobiles is lower than in the Rest of the World. the relative labor endowment is higher than in the Rest of the World. the price of automobiles relative to shoes is lower than in the Rest of the World.

the price of automobiles relative to shoes is lower than in the Rest of the World.

Suppose Country A, a labor-abundant country, produces only wheat and cloth. The following equations illustrate the prices and costs of wheat and cloth in the country. The numbers indicate the amounts of labor and land needed to produce a unit of wheat and cloth. 'W' is the wage rate and 'r' is the rental rate of land. Price of wheat = 1w + 2r Price of cloth = 2w + 1r Suppose Country A engages in free trade and the price of cloth increases to $4 per unit. However, the price of wheat remains unchanged. Under such a situation, the Stolper-Samuelson theorem will predict that: the real income of the landowners will increase but that of the laborers will remain unchanged. the purchasing power of both the landowners and the laborers will increase. the purchasing power of the laborers will increase but that of the landowners will decline. the real income of both the landowners and the laborers will decline

the purchasing power of the laborers will increase but that of the landowners will decline.

The United States is relatively capital-abundant because

the ratio of capital to other inputs is greater in the United States than that in the rest of the world.

The Stolper-Samuelson theorem indicates that, after a country shifts to free trade

the real return to the factor used intensively in the export industry will rise in the long run.

The unskilled wage rate in a country will probably decline if

there's increased immigration of low-skilled workers.

In a two-country, two-commodity model, if a country has an absolute advantage in the production of a certain good, it implies that this country also has a comparative advantage in the production of this good. it is not possible that this country can gain by importing this good from the other country. this country has higher labor productivity in the production of this good.Correct this country has greater resources than the other country.

this country has higher labor productivity in the production of this good.

The table below shows the number of labor hours required to produce one gallon of wine and one pound of cheese in the United States and France. What is the relative price of cheese (the price of cheese in terms of wine) in France under a no-trade situation? 1 gallon of wine US: 4.00 France: 1.00 1 lb of cheese us: 1.00 France: 2.00

two gallons of wine per pound

In July 2018 President Trump acted on recommendations from the Commerce Department and imposed 25 percent tariffs on 818 Chinese products exported to the United States in retaliation for the Chinese government's

unfair policies and practices toward U.S. intellectual property such as patents, copyrights, and trade secrets.

The following input-requirements data are for Country A, a capital-abundant country that produces nothing but bread and wine using only capital and labor as inputs. According to the H-O theory, Country A has a comparative advantage in the production of__ capital input 1 lb of bread = 5 1 gallon of wine = 20 Labor unout 1 lb of bread = 4 1 gallon of wine = 10

wine

The following figure shows the production-possibility curves of Canada (AB) and the rest of the world (CD). The international price ratio faced by the countries is represented by the line P2. I1 and I2 are community indifference curves for Canada and the rest of the world. In the shift from no trade to free trade, cotton production in the world increases by _____ bale(s) and wheat production increases by _____ bushel(s).

eco3250

Set pelajaran terkait

Micro Economics Chapter 2

319 ch16

Chapter 21

Chapter 8: FIBER OPTIC COMMUNICATIONS

Matching Exercise 7.02

spanish greetings

Managing and Analyzing Data in Excel

APLANG SEMESTER ONE FINAL STUDY

Beverages: Soft Drinks

Emergency Preparedness Response Course (EPRC) Operator Course Pre-Test

ATI Pharmacology Made Easy 4.0 ~ The Neurological System (Part 2)

Module 1: Key Actors and Ideas on the World Stage

Chapter 13: Delivery and Visual Resources (COMM)

Group Life Insurance

Module 16

Executive Branch Review Sheet

chapter 10 OB

Chapter 13 (Monopolistic Competition) Homework

CCMA NHA

Econ Exam 1