Country A is relatively land-abundant, and wheat is relatively land-intensive. Given the assumptions of the Heckscher-Ohlin model, the opening of trade by this country will cause the domestic price of wheat to
A. fall.
B. remain unaffected.
C. rise.
D. rise at first, but then fall back to its original level.
Answer: C
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Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the marginal cost faced by a firm is $3 and the market wage rate is $6, the marginal product of the last unit of labor hired by the firm must be:
A) 0.5 units. B) 2 units. C) 9 units. D) 18 units.
Discrimination based on age, race, gender, or family status very likely increases as a result of rent ceilings
Indicate whether the statement is true or false
The tertiary sector of the economy employs housecleaners, restaurant help and hotel employees; it does not employ private consultants, accountants, nanotechnologists, managers and other professionals
Indicate whether the statement is true or false
The index of leading economic indicators usually turns downward: a. prior to economic expansions
b. prior to economic contractions. c. prior to a contraction, but then turns upward before the contraction begins. d. a full 24 months before a recession begins.