Assume that corn and cloth are each produced using both land and labor in a country. Corn is relatively land-intensive. If the country experiences an increase in its endowment of labor, product prices remaining unchanged, the Rybczynski theorem predicts that the production of corn will decline.
Answer the following statement true (T) or false (F)
True
Economics
You might also like to view...
A model is a simplified description of some aspect of the economy.
A. True B. False C. Uncertain
Economics
In the early 1980s, the economy experienced high unemployment with falling inflation.
Answer the following statement true (T) or false (F)
Economics
In which of the following models of firm behavior do firms make strategic pricing decisions and also charge a perfectly competitive price?
A. Contestable market model of oligopoly B. Monopoly model C. Perfectly competitive model D. Cartel model of oligopoly
Economics
Discuss the relationship between world trade and world Gross Domestic Product (GDP) since the early 1950s
What will be an ideal response?
Economics