What is the source of comparative advantage in the Heckscher-Ohlin model?
What will be an ideal response?
Differences in factor endowments
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If the Fed lowers the interest rate in the U.S., ________
A) the U.S. net exports will decrease B) the demand curve for dollars will shift to the left C) the demand curve for dollars will shift to the right D) the real exchange rate of the U.S. will appreciate
When a minimum wage is set above the equilibrium wage rate, ________
A) the supply of low-skilled workers decreases and the supply curve shifts rightward B) unemployment increases C) search activity decreases D) the supply of low-skilled workers increases and the supply curve shifts leftward
John's utility of wealth curve is shown in the above figure. He currently has wealth of $20,000. If there is a 10 percent chance that he could lose all his wealth, what is his expected wealth?
A) $0 B) $2,000 C) $17,000 D) $18,000
Successful advertising:
a. generally causes a firm’s costs to fall. b. generally causes industry costs to fall. c. normally causes demand for the firm to shift right. d. normally causes industry demand to shift left. e. normally causes consumers to buy things for which they have no use