What is the source of comparative advantage in the Heckscher-Ohlin model?
What will be an ideal response?
Differences in factor endowments
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A decrease in the unemployment rate will shift the PPF outward from the origin
a. True b. False Indicate whether the statement is true or false
If there are strong economies of scale and scope, then society
A. can benefit from regulation of a natural monopoly. B. can gain when more firms enter the market. C. can gain when regulators place a price floor on the market. D. should promote the expansion of federally run markets.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
When economic profits are negative, accounting profits
A. must be positive. B. will be negative. C. will equal zero. D. could be positive, negative or zero.