Using the HO model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor intensive, it would be reasonable to expect the United States to
A) specialize completely in soybean production.
B) specialize completely in avocado production.
C) increase soybean production, but still produce some avocados.
D) increase avocado production, but still produce some soybeans.
C
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A firm sells 300,000 units per week. It charges $ 35 per unit, the average variable costs are $40, and the average costs are $55 . At what price does the firm consider shutting-down in the short run?
a. $45 b. $40 c. $95 d. $55
Which of the following statements is false?
A) Changes in technology can lead to changes in the ways in which people are employed. B) Cultural differences may help to explain why some men have difficulty finding jobs in some sectors of the modern economy. C) In recent years, the demand for workers in the manufacturing sector has grown dramatically compared to the demand for workers in the service sector. D) Some people may be at a loss as to what skills are required of them in the current labor market.
Professor Tabarrok points out that it can take a long time to
A. combat the shocks that cause structural unemployment with positive shocks. B. identify the causes of the shocks that cause structural unemployment. C. adjust to shocks that cause structural unemployment. D. reverse the shocks that cause structural unemployment.
What determines the total value of aggregate demand for U.S. real GDP?
A. the Congressional Budget Office B. the Federal Reserve Board C. Wall Street D. the spending decisions of consumers, firms, and governments