Suppose that there are two factors, capital and land, and that the United States is relatively capital abundant while Canada is relatively land abundant. According to the HO model,
A) Canadian landowners should support Canada-U.S. free trade.
B) Canadian capital owners should oppose Canada-U.S. free trade.
C) U.S. capital owners should support Canada-U.S. free trade.
D) All of the above.
D
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If a lower price for a Pepsi decreases the demand for a Coke, the cross elasticity value for Pepsi and Coke is
A) definitely negative. B) definitely equal to zero. C) definitely positive. D) definitely greater than one. E) possibly negative, positive, or zero, but there is not enough information to decide.
According to your textbook authors, what explains the dramatic decline in the U.S. poverty rate since the 1960s?
A) The power of labor unions B) Steady economic growth C) Increases in the minimum wage D) The growth of in-kind government transfers E) The growth of government welfare assistance paid in money
In general, the faster inflationary expectations adjust, the: a. less macro policy can influence unemployment
b. better discretionary policy can be expected to work. c. slower the adjustment of the short-run Phillips curve. d. stronger the case for active policy. e. more effectively a policy can influence unemployment.
The scientific method is
a. the use of modern technology to understand the way the world works. b. the use of controlled laboratory experiments to understand the way the world works. c. the dispassionate development and testing of theories about how the world works. d. the search for evidence to support preconceived theories about how the world works.