In the HO model, a "box diagram" describes the distribution of:
a. output between the two producing sectors in a country.
b. output between the two countries of the model.
c. labor and capital between the two producing sectors of a country.
d. labor between the two countries of the model.
Ans: a. output between the two producing sectors in a country.
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Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears per year. Which of the following statements is TRUE?
A) Washington has an absolute advantage in the production of both pecans and pears. B) Washington has a comparative advantage in the production of both pecans and pears. C) Washington has a comparative advantage in producing pecans and Missouri has a comparative advantage in producing pears. D) Both answers A and C are correct.
The value of marginal product equals ________ multiplied by ________
A) the good's market price; marginal cost B) the good's market price; marginal product C) marginal cost; marginal product D) marginal revenue; total product
If real GDP in a small country in 2015 is $8 billion and real GDP in the same country in 2016 is $8.3 billion, the growth rate of real GDP between 2015 and 2016
A) is 3.0%. B) is 3.6%. C) is 3.75%. D) cannot be determined from the information given.
The process of negotiation between union and management to arrive at a labor contract is called
a. arbitration b. mediation c. reconciliation d. collective bargaining e. impasse