Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then according to the Heckscher-Ohlin Theorem, Chile should export goods that
A) intensively use labor input.
B) intensively use capital input.
C) intensively use natural resources.
D) use capital and labor in about equal proportions.
C
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According to the economic way of thinking,
A) the private sector is more important than the public sector. B) the public sector is more important than the private sector. C) the public sector cannot be adequately studied using economic theory. D) people in society strive to advance the projects they are interested in, and they will advance their interests through market institutions or the institutions of government.
If a "liberal" wanted to increase aggregate demand, which of the following would she tend to favor?
a. An increase in government spending, because it will increase the size of the public sector. b. A decrease in transfer payments, because it keeps the public sector small. c. An increase in transfer payments, because it has a larger multiplier than tax changes. d. A decrease in taxes, because it makes the public sector smaller.
In reality, perfect price discrimination is
a. used by about 75 percent of all monopolies. b. used by about 50 percent of all monopolies. c. seldom used by monopolies because it leads to lower profits. d. rarely possible.
If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $12,000 to purchase those identical goods in 2015, then the price index for 2015 is
A. (12000/10000)*100=120. B. 100. C. (10000/12000)*100=83.33. D. unknown given this data.