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TRUE or FALSE, explain why using sentences, graphs, or equations
(a) In the Heckscher-Ohlin model, if the share of country’s capital used in Computers is higher than the share of country’s labor used in Computers, then Computers must be the capital-intensive sector.
(b) Consider a specific factor model with labor as a mobile factor. Holding goods prices fixed, immigration reduces country’s welfare because it lowers wages.
Consider the following two production functions: Y = AK^(α)L^(1−α) and Y = AK. Define the growth rate of gA = ΔA/A. Calculate productivity growth for each of the production fu
Donald is a stamp collector. The only things other than stamps that Donald consumes are Harold’s doughnuts. It turns out that Donald’s preferences are quasilinear, represented
After a long career an engineer retires with $1.4 million in a retirement account. The engineer spends $94,000 per year from this account in retirement and the account earns 3
The demand for milk is more elastic than the demand for water. Suppose the government levies an equivalent tax on milk and water. W hy he deadweight loss would be larger
A computer costs $1, has an estimated life of 10 yrs and a scrap value of $1500. Assuming no inflation and an interest rate of 4%, what uniform annual amount must be invested
What would likely be indicative of an unstable multiparty system? Which of the following "isms" is committed to a significant reduction in economic inequalities, but not total
“The potentially valid arguments for tariff protection—military self-sufficiency, infant industry protection, and diversification for stability—are also the most easily abused
1. Professor Stern's colleague, Dr. Schmertz, gives one midterm exam and one final exam. He weights the final twice as heavily as the midterm to determine the course grade.
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