Which of the following is NOT a proposition of the Heckscher-Ohlin model?
A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource.
B) The effect of international trade is to tend to equalize factor prices between the trading nations.
C) If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively.
D) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur.
D
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Which of the following goals is most likely to help Jane reduce her body fat from 30% to 20%?
a. "I will reduce my body fat to 20% body fat through exercising." b. "I will reduce my body fat to 20% body fat through eating right." c. "I will reduce my body fat to 20% body fat in 2 weeks." d. "I will reduce my body fat to 20% body fat in 20 weeks."
If the incremental capital output ratio is 3 and the ratio of saving to national income is 9%, according to the Harrod-Domar model the growth rate of income is
(a) zero. (b) 3%. (c) 6%. (d) 12%.
Situations in which the assumption of efficient, competitive markets fails to hold are called:
A. market failures. B. inelastic-response markets. C. missing markets. D. market interventions.
Figure 4.4 illustrates the supply of tacos. An increase in the supply of tacos is represented by a movement from:
A. point a to point b. B. point c to point b. C. S2 to S1. D. S0 to S1.