If trade corresponds to the Heckscher-Ohlin theory, which of the following is most likely to happen in the long run after a labor-abundant country engages in free trade?
A. The rate of unemployment in the country is most likely to increase.
B. The capital to labor ratio used in production in the export sector will increase.
C. The rental rates of capital will increase but the wage rates will decline.
D. The total output in the economy will decline.
Answer: B
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A perfectly competitive firm's short-run supply curve is its marginal cost curve below its average variable cost curve
a. True b. False Indicate whether the statement is true or false
Tim put $275 in the bank one year ago and forgot about it. Today, the bank sent Tim a statement indicating that he now has $294.25 in his account. What interest rate did Tim earn?
a. 5 percent b. 6 percent c. 7 percent d. 8 percent
Voluntary trade promotes economic progress because
a. it discourages businesses from seeking lower per-unit costs through adoption of mass production methods. b. it discourages trade based on the comparative advantage of suppliers. c. it moves goods, services and resources from people who value them less to individuals who value them more. d. This is a trick question; voluntary exchange does not promote economic progress.
Mass production of automobiles, electrical machinery, and steel was a feature of the ________ phase of the industrial revolution.
A. first B. second C. third D. fourth