Tests of the Heckscher-Ohlin model by Bowen, Leamer, and Sveikauskas and by Maskus continue to
A) provide strong support for the theory.
B) provide weak support for the theory.
C) provide evidence against the theory.
C
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Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a decrease in the growth rate of productivity will result in a movement from point ________ to point ________
A) A; B B) B; A C) A; C D) A; D
Arbitrage creates profits but has no effect on prices
Indicate whether the statement is true or false
The major objective of Medicaid is to:
A. provide health care services to the aged. B. provide health care services to those receiving public assistance. C. contain rising health care costs. D. make a basic health care package available to all Americans.
The policy irrelevance proposition implies that
A. unanticipated monetary policy actions are equally effective in stimulating both aggregate demand and aggregate supply. B. anticipated monetary policy actions are ineffective in generating changes in real Gross Domestic Product (GDP). C. anticipated monetary policy actions are effective in stimulating aggregate supply, but they are not effective in stimulating aggregate demand. D. anticipated monetary policy actions are effective in increasing real Gross Domestic Product (GDP), but they do not reduce unemployment.