What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pattern of international trade?
What will be an ideal response?
Heckscher-Ohlin
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The production possibilities frontier illustrates
A. the constant rate of technological progress. B. the fundamental concept of scarcity. C. the rapid growth of the U.S. economy. D. that guns always trade for butter.
If all fixed taxes in the United States were removed and only variable taxes remained, what would be the effect on the expenditures schedule?
a. The expenditure schedule will shift upward. b. The expenditure schedule will shift downward. c. The expenditure schedule will become flatter. d. The expenditure schedule will become steeper.
The summer in Miami turned out to be warmer than usual, causing people to drink more colas. This can be represented by:
a. a rightward movement of the demand curve for colas. b. a leftward movement of the demand curve for colas. c. an upward movement along the demand curve for colas. d. a downward movement along the demand curve for colas.
This table shows the price-level adjustment as compared to the United States. CountryPrice-Level AdjustmentAustralia-0.50China0.25Mexico0.34United States0.00According to the information given in the table shown, if someone makes $40,000 in the U.S., what would his salary need to be in Mexico to maintain the same standard of living?
A. $13,600 B. $26,400 C. $60,606 D. $40,000