Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins
A) wages should rise and rents should fall in H.
B) wages and rents should rise in H.
C) wages and rents should fall in H.
D) wages should fall and rents should rise in H.
E) rent will be unchanged but wages will rise in H.
A
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The expansion of human capital and the discovery of new technologies ________ because ________
A) decrease real GDP; they shift the productivity curve downward B) increase real GDP; they result in a movement upward along the productivity curve C) increase real GDP; they shift the productivity curve downward D) increase real GDP; they shift the productivity curve upward E) decrease real GDP; they shift the productivity curve upward
Any increase in efficiency increases output available for distribution.
Answer the following statement true (T) or false (F)
Adverse selection and moral hazard are not problems associated with market transaction
Indicate whether the statement is true or false
Suppose a country experiencing hyperinflation for a long period of time chooses to use a historically stable currency, like the U.S. dollar, to increase investor and consumer confidence and provide a stable and secure economic and investment climate. This is an example of _____
a. globalization b. privatization c. dollarization d. standardization