The ________ posits that trade flows between countries will be larger as the economic sizes of the two countries are larger and the geographic distance between the two countries is smaller.
A. gravity model
B. Heckscher-Ohlin model
C. Stolper-Samuelson theorem
D. theory of absolute advantage
Answer: A
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Supply-side inflation is the rise in price level caused by slow growth (or decline) of aggregate supply.
Answer the following statement true (T) or false (F)
One of the least regulated common resources today is
a. state parks. b. the ocean. c. forest preserves. d. the Great Lakes.
A purely competitive firm currently producing 20 units of output earns marginal revenues of $12 from each extra unit of output it sells. If it sells 30 units, then its total revenues would be:
A. $120 B. $240 C. $360 D. Indeterminate based on the given information
If the existence of alternative opportunities makes people become less willing to work in poultry processing plants, then the real wage of unskilled workers in poultry processing plants is predicted to ________ and the employment of unskilled workers in poultry processing plants is predicted to ________.
A. increase; not change B. decrease; decrease C. increase; decrease D. increase; increase