Which of the following is NOT a proposition of the Heckscher-Ohlin model?
A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource.
B) The effect of international trade is to tend to equalize factor prices between the trading nations.
C) If Mexico is an unskilled labor abundant country, then Mexico has a comparative advantage in the production of goods that use unskilled labor more intensively.
D) If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively.
E) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur.
E
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Over the last 5 years the amount of country A's currency it took to buy a unit of country B's currency more than doubled. A. Did country A's currency depreciate or appreciate? B. According to purchasing-power parity, what explains the change in the value of country B's currency?
The Board of Governors of the Federal Reserve System has how many governors?
A. 7 B. 5 C. 12 D. 50
Which of the following wars consumed almost half of the United States' total output?
A. the Civil War B. World War I C. World War II D. the Vietnam War
Firms have an incentive to substitute capital for labor as the
A. price of labor decreases. B. price of capital increases. C. marginal product of labor increases. D. price of labor increases.