The two-country, multi-product model differs from the two-country, two-product model in that, in the former
A) the relative wage ratio will determine the pattern of trade ( which good is exported by which country.
B) which country will export which product is determined entirely by labor productivity data.
C) full specialization is likely to hold in equilibrium.
D) none of the goods are potentially nontraded.
E) domestic relative prices are not relevant.
A
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Good weather in cities such as San Diego
A) is absolutely free for the residents of that city. B) is allocated using a weather market. C) imposes indirect payments for the residents of that city. D) b and c E) none of the above
School Board Voters' Ordered PreferencesDavidErnieFionaNew gymNew libraryNew computer labNew libraryNew computer labNew gymNew computer labNew gymNew libraryIf a pair-wise majority vote was held to determine which school project gets funded, the voters' preferences are shown in the table, and the gym and library are voted on first, which project will win in the end?
A. Gym B. Computer lab C. Library D. It is impossible to predict which project would win.
The following equations describe the prices and marginal costs of producing corn and toys in a country. The numbers in the equations indicate the amounts of labor and land needed to produce a unit of corn and a unit of toys. In the equations, the wage rate and the rental rate are denoted by 'w' and 'r,' respectively.Pcorn = 80w + 40rPtoys = 100w + 30ra. If the price per unit of corn and the price per unit of toys are initially $200, calculate the wage rate and the rental rate. Calculate the labor cost per unit of corn and per unit of toys. What is the rental cost per unit of corn and per unit of toys?b. Suppose post-trade the price of corn increases to $240. The price of toys remains unchanged. What are the new values for 'w' and 'r' after adjustment to the new long-run
situation?c. What is the change in the real wage with respect to each good? What is the change in the real rental rate with respect to each good?d. Relate your conclusions in Part C. to the Stolper-Samuelson theorem. What will be an ideal response?
Which of the following industrial policies are effective for developing countries to deal with inflows of capital from overseas?
A. Market Substitution, government subsidy, and crowding out. B. Import substitution, export-led growth, and crowding out. C. Import substitution, government subsidy, and clustering. D. Import substitution, export-led growth, and clustering.