Briefly explain the major argument of the factor endowment trade theory
What will be an ideal response?
Countries will tend to specialize in the production of commodities making intensive use
of their relatively abundant factors of production; for example, unskilled labor, or natural resources.
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When the Fed changes the quantity of money, there is an immediate effect on
A) the inflation rate but not the price level. B) the nominal interest rate. C) real GDP. D) the price level and the inflation rate. E) the price level but not the inflation rate.
An increase in the demand for green tea raises the price of green tea from $16 a pound to $20 a pound. As a result, quantity supplied increases by 30 percent. Using the midpoint formula, what is the value of the price elasticity of supply?
A) 1.35 B) 1.875 C) 2.22 D) 7.5
The Phillips curve represents a direct relationship between the inflation rate and the unemployment rate
a. True b. False Indicate whether the statement is true or false
Which of the following reduced the demand stimulus effects of the Fed's low interest rate policy pursued during, and after, the financial crisis of 2008-2009?
a. Declining stock prices during 2010-2012. b. A reduction in the velocity of money. c. An increase in earnings derived from money market accounts, saving deposits, and similar saving instruments. d. A sharp increase in the rate of inflation during 2009-2012.