Why is the H.O. model called the factor-proportions theory?
What will be an ideal response?
The H.O. model explores the nature and the limitations of assuming that the sole determinant of comparative advantage is inter-country differences in (relative) factor proportions.
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Which area in the above figure shows the producer surplus at the price and quantity that would be set by a single-price monopoly?
A) C + D B) C + D + E C) C + D + F + G D) C + D + F + G + I
For a Giffin good, the income effect is
A. less than the substitution effect. B. the same as the substitution effect. C. greater than the substitution effect. D. in the same direction of the substitution effect.
Which of the following explains the spread of financial crises from one country to another?
A. Moral hazard B. Global contagion C. Butterfly trade D. The Doppler effect
Explain the natural unemployment rate and its relationship to inflation rate
What will be an ideal response?