What are the assumptions of the Heckscher-Ohlin theorem?
What will be an ideal response?
It assumes that products can be produced using differing proportions of inputs and that inputs are mobile between sectors in each economy, but that factors are not mobile between economies.
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A sunk cost is one that
a. does not vary with the level of output. b. increases as the firm's production increases. c. measures the value of the firm's self-owned resources. d. can no longer be avoided.
One of the first organizations to investigate the business cycle was
A) the Federal Reserve System. B) the National Bureau of Economic Research. C) the Council of Economic Advisors. D) the Brookings Institution.
An example of an opportunity cost that is also an implicit cost is
a. a lease payment. b. the cost of raw materials. c. the value of the business owner's time. d. All of the above are correct.
The Friedman natural rate theory is based on rational expectations and is also called the new classical theory
Indicate whether the statement is true or false