The Stolper-Samuelson theorem indicates that, after a country shifts to free trade
A. the real return to the factor used intensively in the import-competing industry will rise in the long run.
B. the real return to the factor used intensively in the export industry will rise in the long run.
C. the real return to all the resources in an economy will increase.
D. the real return to the factor used intensively in the export industry will fluctuate around a long-run trend.
Answer: B
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In the figure above, the deadweight loss is
A) $4,000 an hour. B) $2,000 an hour. C) $1,000 an hour. D) $5,000 an hour. E) zero.
Suppose a Treasury bond will mature in 4 years. If the bond pays a coupon of $200 per year and will make a final par value payment of $5,000 at maturity, what is its price if the relevant market interest rate is 3%?
A) $5,185.85 B) $5,304.26 C) $5,743.42 D) $6,011.82
Which of the following will be most likely to cause the production possibilities curve for a country to shift inward?
What will be an ideal response?
In econometrics, simultaneity arises when:
A. strictly exogenous explanatory variables determine the dependent variable through a step-by-step process. B. the error term is correlated with both the dependent variable and explanatory variables. C. one or more of the explanatory variables is jointly determined with the dependent variable. D. both serial correlation and heteroskedasticity are present in an hypothesized model.