The hypothesis that the results of a longrun HeckscherOhlin model with labor immigration will result in an increase in production for the labor intensive industry while reducing production in the capitalintensive industry is known as the _____ theorem.
a. StolperSamuelson
b. specificfactors
c. Ricardian
d. Rybczynski
Answer: d. Rybczynski
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The establishment of the Euro as a unit of account in 1999 meant that from then on the currencies of the participating countries traded at a fixed rate, until the Euro completely replaced these currencies in the year 2002
(a) How would the inflation rates of these countries have to had been in these transition years for PPP to hold? (b) If the inflation of Italy was twice as high as that of Germany a year between 1999 and 2002, what can we say then about the Italian lira against the German mark? (c) What does the concept of PPP thus tells us about what needs to happen for such this monetary agreement to work for a long period of time?
Country A's tax system is more efficient than Country B's tax system if
a. Country A collects less tax revenue than Country B, and the cost to taxpayers is the same in both countries. b. Country A collects more tax revenue than Country B, even though the cost to taxpayers is greater in Country A than in Country B. c. the same amount of revenue is raised in both countries, but the cost to taxpayers is smaller in Country A than in Country B. d. the same amount of revenue is raised in both countries, but the taxes are collected in a shorter amount of time in Country A than in Country B.
If the market for a product is broadly defined, then
A) the good has many complements. B) there are few substitutes for the product and the demand for the product is relatively inelastic. C) there are many substitutes for the product and the demand for the product is relatively elastic. D) the expenditure on the good is likely to make up a large share of one's budget.
Fractional reserve banking is the system that
A) allows banks not to insure their deposits. B) allows banks not to join the Federal Reserve System. C) limits banks' activities from crossing state lines. D) allows banks to keep smaller reserves than their deposits.