According to the HO model, countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other
Indicate whether the statement is true or false
TRUE
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If the income tax rate is 20 percent and the tax rate on consumption expenditure is 15 percent, then the tax wedge is
A) 2 percent. B) 35 percent. C) 300 percent. D) 5 percent. E) None of the above answers is correct.
Jim, a U.S. citizen, works only in Croatia. The value added to production from his employment is:
A) included in only Croatian GNP. B) included only in U.S. GDP. C) included only in U.S. GNP. D) not included in either U.S. GDP or U.S. GNP.
Cost-push inflation is caused by: a. an increase in aggregate demand
b. a decrease in aggregate demand. c. an increase in short-run aggregate supply. d. a decrease in short-run aggregate supply.
Figure 9-3
Suppose that British incomes rise relative to incomes in the United States. Then, in
a.
the demand curve will shift from D1 to D2
b.
the demand curve will shift from D2 to D1
c.
the supply curve will shift from S1 to S2
d.
the supply curve will shift from S2 to S1
e.
neither the demand for nor the supply curve will shift