Explain the Heckscher-Ohlin theorem
What will be an ideal response?
The Heckscher-Olin theorem is a theory that explains the existence of a country's comparative advantage by its factor endowments. A country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product.
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What are the features of a Cobb-Douglas production function?
What will be an ideal response?
Hyperinflation is defined as periods of
A) inflation over 25 percent per year B) negative price changes. C) low inflation. D) inflation over 50 percent per month. E) inflation under 10 percent per year.
Which of the following is an economic argument used to explain why slavery persisted in the U.S.?
(a) Slavery crushed out individualism among slaves. (b) The social structure of slavery did not permit black leaders to lead revolts. (c) Slavery was an overall moral institution. (d) Slavery was a rational institution.
Refer to Figure 9.1. If the market is in equilibrium, the consumer surplus earned by the buyer of the 1st unit is ________
A) $5.00 B) $15.00 C) $22.50 D) $40.00