In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
A) tastes and preferences.
B) military capabilities.
C) the size of their economies.
D) relative abundance of factors of production.
E) labor productivities.
D
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Most trade between Mexico and the United States is intrafirm
Indicate whether the statement is true or false
With a price floor:
A. producer surplus will increase if profits increase. B. producer surplus will increase is profits fall. C. producer surplus will decrease if profits increase. D. producer surplus always decreases.
Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $6, then the firm will:
A. be better off producing 150 units than shutting down. B. be better off exiting the market and using the resources for other production activities. C. be better off shutting down in the short run and waiting until the market price rises above $10. D. None of these
A decrease in wage rates in the United States will:
A. Decrease total wage income if labor demand is elastic B. Increase total wage income if labor demand is inelastic C. Increase total wage income if labor demand is elastic D. Decrease total wage income regardless of the elasticity of labor demand