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Carefully explain, for each of the following two statements, why the statement is either TRUE or FALSE.
(a) "In a 2x2x2 Heckscher-Ohlin context, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import-competing industry decreases and the real return to capital in the export industry also decreases."
(b) "In the ‘specific-factors model,' with capital fixed in each sector, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import-competing industry decreases and the real return to capital in the export industry also decreases."
Can the government make things worse by intervening in markets? Are there other options outside the markets and government that will fix macroeconomic failure?
Suppose a consumer live two periods, in the first have an income m1 = 30 and in the second an income of m2 = 20. Suppose the interest rate is 10% and can borrow and lend at that interest rate. What is the maximum quantity he can consume in the first ..
Stores need not accept your check but must accept currency because
Converse Elucidate how you might go about evaluating the rate of return for the new equipment.
Calculate quantity, total revenue and profit when the company maximizes its profit and changes the same price in both markets.
Without using the midpoint formula, can you tell whether demand is elastic, inelastic, or unit-elastic over this price range.
Human capital theory predicts that women who plan on interrupting their work career will:
Increase or decrease in the money supply increase the price level to the tolerable range
You have just purchased a house for $400,000, paid $24,000 for legal fees and $17,000 for renovations. The market price of the house does not change. If the sales tax on a house were 3% (to be paid by you if you sell the house), what is the sunk cost..
q1. why do proponents of active policy recommend government intervention to close an expansionary gap? briefly
What information would you use to make predictions about the economic demands and probable settlement for a particular union-management negotiation?
Think of a good product that you have purchased recently. If the price of this item increases, how would this affect the quantity of the good that you consume? Is the Demand for this good Price elastic or Price inelastic? Using specific examples, rel..
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