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Q. Calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and land.
Answer: For the reason that good 2 uses land, a fall in its comparative price will result in a fall in rental rates on land, and an enhance in the return to capital.
Why Adam Smith theory cannot be applicable?
Q. "The H.O. model remains useful as a way to predict the income distribution effects of trade." Discus s. Answer: The Stolper-Samuelson theorem, one of the basic theorems ari
Q. The following table introduces the relationship between wholesale price index and industrial production changes between the years 1929 - 1935. What is the purpose of the given
Q. Using a figure, show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run. Answer: A t
I need help interpreting an article. PLEASE!
what are the different forms of opportunity cost theory
Importance of International Trades : The basis of international trade is to be found in the diversity of economic resources in different countries. All countries have not been end
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Q. Describe the role of offshore banking and of offshore currency (eurocurrencies) trading. Answer : Both have mushroomed because of increased international trade inc
what are the aims aond objective and purpose of IMF
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