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 Stolper-Samuelson Theorem, the incomes of the owners of ________ are likely to rise in Brazil after trade with Chile begins
A) capital
B) labor
C) natural resources
D) It is impossible to determine which will be favored.
A
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Refer to Table 2-15. Which of the following statements is true?
A) Jack has a comparative advantage in lawn mowing and George in garden cultivating. B) Jack has a comparative advantage in garden cultivating and George in lawn mowing. C) George has a comparative advantage in both tasks. D) Jack has a comparative advantage in both tasks.
A quota is
a. a tax placed on imports. b. a limit on the quantity of imports. c. a tax on exports to other countries. d. an excess of exports over imports.
An investor who diversifies by purchasing a 50-50 mix of two stocks that are not perfectly positively correlated will find that the standard deviation of the portfolio is:
A. greater than the standard deviation from holding the same balance in only one of these stocks. B. the sum of the standard deviations of the two individual stocks. C. less than the standard deviation from holding the same balance in only one of these stocks. D. greater than the sum of the standard deviations of the individual stocks.
Which would be considered to be one of the factors that shift the aggregate supply curve? A change in:
a. Business productivity b. Net export spending c. Consumer expectations d. Consumer spending