One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ________ is (are) identical in all countries
A) factor endowments
B) scale of production
C) factor intensities
D) technology
E) opportunity costs
D
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The quantity of DVD players purchased declined in spite of a decline in price. This implies that the
A. supply curve for DVD players shifted to the left. B. demand curve for DVD players shifted to the right. C. demand curve for DVD players shifted to the left. D. supply curve for DVD players shifted to the right.
Ad valorem taxes _____
a. are based on the dollar value of the good b. are based on the number of units sold c. are taxes on advertising d. b and c
Which of the following statements brings out the relationship between the value of marginal product (VMP) and the marginal revenue product (MRP)?
a. They are the same for a firm selling in a perfectly competitive market structure. b. They are the same for a firm purchasing inputs in a perfectly competitive market structure. c. VMP is greater than MRP when a firm is perfectly competitive in the product market. d. VMP is less than MRP when a firm is perfectly competitive in the product market. e. They are same when a firm is a monopolist.
Assume that the market-clearing wages are $10 per hour in a safe job and $18 per hour in a risky job. Then, at the completion of a war, many ex-soldiers who enjoy risky ventures enter the labor market. Which of the following is not a likely outcome of this change?
A. The wage differential will decrease. B. The wage associated with risky jobs will decrease. C. The number of people working risky jobs will increase. D. Many firms that currently offer risky jobs will begin offering safe jobs. E. The fraction of people working safe jobs will decrease.