In the HO model, the production possibility frontier is bowed out due to the assumption of
A) identical tastes.
B) different factor intensities in the production of the two goods.
C) increasing returns to scale.
D) Two of the above.
B
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In the above figure, the price elasticity of supply at any given quantity is
A) highest along S1, next highest along S2, and lowest along S3. B) highest along S3, next highest along S2, and lowest along S1. C) equal to zero on each of the three supply curves. D) equal to one on each of the three supply curves.
What factors other than the wage rate influence the demand for labor? How is demand affected by changes in these factors?
What will be an ideal response?
In order to spend more time with her children, a young mother decides to work less hours as her pay increases. What does her labor supply curve look like?
What will be an ideal response?
In a perfectly competitive labor market, the total labor cost curve is a straight line starting at the origin
Indicate whether the statement is true or false