The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former
A) has only two countries.
B) has only two products.
C) has two factors of production.
D) has two production possibility frontiers (one for each country).
E) has varying wage rates.
C
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Legal risk is evident in a country that has _____.
A. falling living standards B. government debt C. a violation of property rights D. high inflation
Suppose the price elasticity of demand for tacos is 0.80. If the price of tacos increases by 10 percent, then the quantity demanded of tacos should, ceteris paribus:
a) Decrease by 8 percent. b) Decrease by 1.25 percent. c) Increase by 8 percent. d) Increase by 1.25 percent.
The table above gives the total cost information for Hank and Helen's cherry farm. They sell their cherries in a perfectly competitive market, where the price is $6.00 per pound. If Hank and Helen produce and sell 6 pounds of cherries, what is their profit?
Select one: a. $6 b. $20 c. $28 d. $8
The tendency for investment to increase when aggregate output increases is the result of the ________ effect.
A. income B. accelerator C. substitution D. multiplier