If the Heckscher-Ohlin model is correct, there would never be intraindustry trade
Indicate whether the statement is true or false
FALSE
Explanation: Several explanations of intraindustry trade are consistent with a Heckscher-Ohlin world, including transportation costs and data problems.
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Economics is best defined as the study of
A) financial decision-making. B) inflation, unemployment, and economic growth. C) the choices made by people faced with scarcity. D) how consumers make purchasing decisions.
The CPI was 225 in 2008 and 232.2 in 2009. The nominal interest rate during this period was 1.4 percent. What was the real interest rate during this period?
A) 4.6 percent B) -1.8 percent C) -3.2 percent D) 3.2 percent E) 1.8 percent
A sole proprietorship is
A) the least profitable type of business to set up. B) the easiest type of business to set up. C) the most difficult type of business to set up. D) the most expensive type of business to set up.
Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 3 hours per day. If he is following the marginal principle, what must his marginal cost per hour be?
A. $24 B. $32 C. $40 D. $48