Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.
Refer to the data above. The mutually beneficial terms of trade will be:
A. Greater than 4 units of food for 1 unit of clothing
B. Between 4 and 5 units of food for 1 unit of clothing
C. Between 2 and 3 units of food for 1 unit of clothing
D. Less than 2 units of food for 1 unit of clothing
C. Between 2 and 3 units of food for 1 unit of clothing
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C = $5 million + 0.9(1 - 0.1)Y I = $7 million G = $6 million NX = $1 million Based on the above data, the equilibrium level of GDP is
A) $20.9 million. B) $23.5 million. C) $100 million. D) $111.8 million.
In a graphic relationship, shifts in a curve are caused by a change in:
a. the slope of the curve. b. a factor not measured on the axes of the graph. c. one of the factors measured on either axes of the graph. d. any factor, whether measured on the axes of the graph of not.
According to Heckscher and Ohlin, each country has certain ______, such as land, labor, and capital.
Fill in the blank(s) with the appropriate word(s).
The main debate during the 1960s was
A) between Keynesians and classicals. B) between new Keynesians and new classicals. C) between Keynesians and monetarists. D) between new Keynesians and monetarists.