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.

Economics

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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

Economics

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.

Economics

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

Economics

Explain the natural unemployment rate and its relationship to inflation rate

What will be an ideal response?

Economics