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1. What is the difference between relative factor endowments and relative factor intensities?
2. What does the Hecksher-Ohlin theorem say about home versus foreign countries while they remain in autarky?
3. Assume that the U.S. has 400 units of K (capital) and 300 units of L (labor) while Mexico has 75 units of K and 125 units of L. In both countries it takes 3K/L to produce each unit of X but only 2K/L to produce each unit of Y. Which nation has the comparative advantage in exporting X? Which nation has the comparative advantage in exporting Y?
At his profit-maximizing level of output, a monopolist's average total cost curve is tangent to his demand curve. The monopolist a. is earning a negative economic profit. b. may or may not be earning a negative economic profit. c. is earning zero eco..
Determine the point price and income elasticity’s for household furniture. b. What interpretation would you give to the exponent for R?
If you had the power of the President, Congress, and the Federal Reserve, what would you do to stimulate the U.S. economy which is barely growing?
According to the equation of exchange, if total output is 2,000 units, the velocity of money is 5, and the money supply is $1,000, the average price per transaction will be
A man may be preferred to a woman by an employer who will make a substantial investment in the training of the employee because
Now assume that once he earns $400 he loses all his food stamp assistance. How does this change his budget constraint.
As an advisor to the project manager, Derrick Westmuller, illustrate what set of procedures would you advise they adopt.
You and your spouse just adopted twin girls, little Heather and Beth. You want to make sure theyare taken care of for the next 22 years. (A)Based on the following information, how much lifeinsurance needs to be purchased for the husband, if any? (B) ..
US and Canada can both grow wheat and can do mining. Use the following table to look for which country has a comparative advantage in mining. (Hint: Find the cost of mining in terms of wheat in each country.)
A sudden crash in the stock market shifts
illustrate what would need to reduce the supply of money if Canada was an open economy with a flexible exchange rate.
Explain whether each of the following events represents a shift in the demand curve or a movement along the demand curve. Draw your answer.
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