Suppose a capital-abundant large country experiences a significant increase in its capital stock. This change in endowments is most likely to lead to
A. an improvement in the country's terms of trade.
B. no change in the price of the labor-intensive good relative to the price of the capital-intensive good.
C. an increased willingness to trade.
D. a decreased willingness to trade.
Answer: C
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Refer to Figure 4.1. Suppose Alvin chooses Top, while Simon chooses Down, and Theodore chooses Left. Theodore's payoff will be
A) 4. B) 6. C) 14. D) 24.
Explain why Hong Kong has experienced faster economic growth than the United States
What will be an ideal response?
If the price of domestically produced power tools increases, then
a. the consumer price index and the GDP deflator will both increase. b. the consumer price index will increase, and the GDP deflator will be unaffected. c. the consumer price index will be unaffected, and the GDP deflator will increase. d. the consumer price index and the GDP deflator will both be unaffected.
Government issued privileges that allow the holder to discharge a specified amount of pollution into the air are known as ______.
a. transaction cost permits b. environmental protection agreements c. transferable pollution rights d. corrective pollution taxes