The Heckscher-Olin model uses differences in factor abundance to determine whether any nation has a comparative advantage in any good
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following situations is least likely to involve mutual interdependence?
A) Canada is thinking about banning all imported beef from the United States. B) Octavia is thinking about trading in her Toyota Prius for a BMW 220i. C) Walmart is considering moving up the start-time for its Black Friday sales to 12:01 AM on Thanksgiving day. D) McDonald's is thinking about lowering all its menu prices by 50 percent.
A prisoner's dilemma exists when
A) all parties are as well off as possible. B) all parties are worse off than would be the case if the parties could agree to another set of behaviors. C) all but one party is worse off. D) there are no benefits at all from any strategy.
What will happen if a country uses money creation to finance a large and expanding national debt?
a. Real output and employment will grow rapidly. b. Nominal interest rates will fall. c. The foreign exchange value of the currency will increase. d. The rate of inflation will rise.
If a market is contestable, the market will be characterized by
a. minimum-cost production methods and a competitive (normal) profit rate. b. high barriers to entry and a small number of suppliers. c. prices in excess of production costs and mergers leading to monopoly. d. a large number of suppliers offering a homogeneous product.