In the specific factors model, a 5% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________
A) increase by 5%; remain unchanged; remain unchanged
B) increase by less then 5%; decrease; increase
C) increase by more then 5%; increase; remain unchanged
D) remain constant; increase; increase
E) remain constant; decrease; decrease
A
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A "backflow" refers to:
A. Unauthorized aliens who enter an industrialized nation looking for work B. Legal aliens who enter an industrialized nation looking for work C. Migrants who enter a series of industrialized nations looking for work D. Migrants who repeatedly return to their home countries after seeking work in another country
Political and social desires to increase the "quality of life" in the U.S. led to an increase in the federal funding of public libraries, television and radio as well as increases and broadened uses of federal lands, waters and parks
Indicate whether the statement is true or false
Discuss the criticisms leveled against the Aid to Families with Dependent Children program
The international substitution effect exists because a
a. higher price level will reduce interest rates and stimulate foreign investment. b. lower price level will make domestically produced goods less expensive relative to foreign goods. c. higher price level will reduce the purchasing power of money. d. lower price level will encourage Americans to import more foreign goods.