The specificfactors model predicts that after immigration, the equilibrium wage in both industries in the destination nation:
a. rises.
b. falls.
c. remains the same.
d. cannot be determined with the information given
Ans: b. falls.
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Given a fixed upsloping AS curve, a rightward shift of the AD curve will ________.
A. increase both the price level and real output B. cause cost-push inflation C. increase the price level but not real output D. increase real output but not the price level
Intraindustry trade is characterized by what two features of the industry and market?
A) Diseconomies of scale and homogeneous products B) Non-tariff barriers and large-scale foreign investment C) Quota auctions and low effective rates of protection D) Economies of scale and differentiated products E) Government subsidies and industrial policy
Which of the following explains why elected representatives will find borrowing to be an attractive method of financing current government programs?
What will be an ideal response?
A shortage exists in the market if
a) there is an excess supply of the good b) quantity supplied exceeds quantity demanded c) the current price is below its equilibrium price d) all of the above are correct