A product is produced in a monopolistically competitive industry with scale economies. If this industry exists in two countries, and these two countries engage in trade with each other, then we would expect
A) each country will export different varieties of the product to the other.
B) the country in which the price of the product is lower will export the product.
C) the country with a relative abundance of the factor of production in which production of the product is intensive will export this product.
D) neither country will export this product since there is no comparative advantage.
E) the countries will trade only with other nations they are not in competition with.
A
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The stock of labor talents and skills is known as
a. a public good. b. the functional distribution. c. human capital. d. enterprise.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
When a worker in the United States sends money to his family in Mexico, this transaction is recorded in the U.S. balance of payment as an:
A. outflow in the merchandise account. B. outflow in the net transfer account. C. inflow in the investment income account. D. inflow in the service account.
The gold standard was helpful in stabilizing economies during the Great Depression
Indicate whether the statement is true or false