For which of the following does the HeckscherOhlin model offer an explanation?
I. gains from trade
II. the pattern of trade.
III. the effects of international trade on the returns to mobile resources.
a. I
b. I and II
c. I and III
d. I, II, and III
Ans: d. I, II, and III
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If the government runs a budget deficit to fight a war and there is no Ricardo-Barro effect, what is an impact of the deficit?
A) The quantity of investment increases. B) The real interest rate rises. C) Firms purchase more capital equipment. D) Animal spirits or irrational exuberance is created. E) The quantity of private saving decreases.
Rent-seeking behavior can sometimes cause
A. a decrease in government spending. B. a sharp increase in economic activity. C. corruption in public officials. D. housing rental prices to increase.
If the marginal propensity to save (MPS) is 0.5, the multiplier will be
A. 2. B. 4. C. 2.5. D. 0.5.
What are the economic effects of imposition of a new occupational license or examination on a labor market?
What will be an ideal response?