If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, in order to improve the country's economic welfare, the Gambinian government should
A) engage in free trade.
B) protect the capital-intensive product.
C) protect the land-intensive product.
D) protect the labor-intensive product.
E) discontinue all international trade.
A
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Labor productivity typically rises when ________
Fill in the blank(s) with the appropriate word(s).
If the unemployment rate has reached an all-time low, the production of output is probably
a. high b. low c. fluctuating d. stable e. inefficient
Which of the following Fed policies would help the economy out of a recession?
A. An increase in reserve requirements B. Open market sales of government securities C. Open market purchases of government securities D. An increase in the discount rate
The demand for labor increases when the:
A. real wage increases. B. value of the marginal product of labor decreases. C. real wage decreases. D. value of the marginal product of labor increases.