The Stopler-Samuelson Theory suggests that
a) Owners of capital tend to gain from trade
b) Countries will have a comparative advantage in goods produced using factors in which the country is abundant
c) Trade increase the real incomes of owners of the abundant factor of production relative to those of the owners of the scarce factor
d) Commodity prices tend to fall relative to the price of manufactured goods
e) Tariff protection can benefit a country which is large enough to influence the world price of traded goods
f) Mexico
c) Trade increase the real incomes of owners of the abundant factor of production relative to those of the owners of the scarce factor
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Which of the following statements about central bank structure and independence is TRUE?
A) In recent years, with the exception of the Bank of England and the Bank of Japan, most countries have reduced the independence of their central banks, subjecting them to greater democratic control. B) Before the Bank of England was granted greater independence, the Federal Reserve was the most independent of the world's central banks. C) Both theory and experience suggest that more independent central banks produce better monetary policy. D) While the European Central Bank is independent, it is not as independent as the Federal Reserve.
In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has
a. risen as the demand for skilled labor has increased relative to the demand for unskilled labor. b. risen as the demand for skilled labor has decreased relative to the demand for unskilled labor. c. fallen as the demand for skilled labor has increased relative to the demand for unskilled labor. d. fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor.
Matt graduates from college and gets a job paying $70,000 a year. While in school, he consumed 5 pounds of chicken and 10 pounds of shrimp a month. After he starts working, he consumes 4 pounds of chicken and 12 pounds of shrimp a month. If everything
else is held constant, we know that A) chicken and shrimp are normal goods for Matt. B) chicken is an inferior good and shrimp is a normal good for Matt. C) chicken is an inferior good for Matt. D) shrimp is a normal good for Matt.
If yesterday $1 would buy 800 South Korean won, but today $1 will only buy 790 won; the:
A. dollar has appreciated in value. B. dollar has depreciated in value. C. demand for dollars in the foreign exchange market has increased relative to the supply of won. D. won price of dollars has gone up.