The HeckscherOhlin model assumes that technology in each industry:
a. Is the same in each nation—each firm has access to the most profitable technology.
b. has increasing returns so that one nation will be able to gain a comparative advantage by developing new technology.
c. is very different across the world—some nations have access to technology, whereas others do not.
d. is hard to access because R&D is very expensive especially for lowincome nations.
Ans: a. Is the same in each nation—each firm has access to the most profitable technology.
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An oligopoly is a market
a. with few buyers. b. with one buyer. c. dominated by a few sellers. d. under the control of a few politically powerful individuals.
Because taxes distort incentives, they cause markets to allocate resources inefficiently
a. True b. False Indicate whether the statement is true or false
Which statement is true?
A. A change in derived demand brings about a change in final demand. B. A change in final demand brings about a change in derived demand. C. A rise in final demand is associated with a decline in derived demand. D. None of these statements are true.
The industry that comes closest to perfect competition is
A. clothing. B. the airlines. C. wheat-growing. D. steel.