According to the Rybczynski theorem, if a country increases its endowment of capital and prices remain constant, then its output of both the capital and labor intensive goods will rise
Indicate whether the statement is true or false
FALSE
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A consumer maximizes utility when she consumes at a point where a. the marginal utility of each good is the same
b. the marginal utility per dollar spent on each good is the same. c. the price of each good is the same. d. All of the above statements are true.
Refer to the graph shown. At which point is elasticity zero?
A. A B. B C. C D. D
If a country currently produces a mix of output that lies inside its production possibilities curve, then macro stabilization policies try to
A. Shift the aggregate demand curve to the right. B. Shift the short-run aggregate supply curve to the left. C. Shift the aggregate demand curve to the left. D. Move the economy to the right down the existing aggregate demand curve.
What factors can push the real wage rate above its equilibrium level? Briefly explain each factor
What will be an ideal response?