If two countries are very different in relative factor abundance, then empirical support for which of the following would be less likely? O the Factor Price Equalization Theorem the Law of One Price O the Gravity Theorem O the Heckscher-Ohlin Theorem O the Law of Demand
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If two countries are very different in relative factor abundance, then empirical support for which of the following would be less likely? O the Factor Price Equalization Theorem the Law of One Price O the Gravity Theorem O the Heckscher-Ohlin Theorem O the
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- SMARTPHONES (Millions) 40 20 0 PPF 0 40 60 CORN (Millions of bushels) Which of the following is true regarding this economic model? O In order to construct such a model, an economist would need real life data regarding countries that produce only two goods. O The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. O This PPF is not an economic model. O The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. 20 80 100The sharp rise in housing prices from 2003 to 2005 was driven by a high level of housing. Select the correct answer below: O supply of O demand for O loans for O none of the above In 20 hours, Japan can produce 70 bushels of corn. In 14 hours, Japan can produce 60 bushels of wheat. What is the opportunity cost of producing 1 bushel of corn in terms of bushels of wheat? Assume Japan experiences constant opportunity costs. Round your answer to two decimals. Hint: Calculate how much of each good can be produced in 1 hour, then solve for the amount of foregone wheat when choosing to produce a bushel of corn. Provide your answer below: bushel(s) of wheat If a national economy runs a trade surplus, the trade sector will involve a(n). of financial capital. Select the correct answer below: inflow outflow O shortage balanceThe countries with the highest mean incomes are also the countries with the highest O savings to income ratios O apital to labor ratios capital to savings ratios O labor to capital ratios
- As a result of a tariff on an imported good, O domestic producers are better off because they sell more goods at the same price. O domestic producers are better off because they sell more goods at a higher price. O domestic producers are better off because they sell the same quantity of goods at a higher price. domestic consumers are better off because there are more domestically produced goods available. domestic consumers are neither better off nor worse off because imports do not change.Which of the following is NOT a concern for macroeconomics? O A. The level of unemployment caused by the COVID 19. B. The loss of economic output caused by COVID 19. O C. The change in the price level of alcohol-based hand sanitisers caused by COVID 19. O D. the change in the level of imports vs exports caused by COVID 19.What is comparative advantage? Give an example. Why does it make sense for economies to specialize according to comparative advantage and trade? . What is the production possibilities frontier? What economic concepts are represented in the production possibilities model?
- .5 The doctrine of comparative advantoge was first put forth by aved put of Select one: O a John Maynard Keynes b. David Ricardo O C. Adam Smith O d Ricky Ricardo Clear my choiceConsider two countries, Home and Foreign and two goods appples and bananas. In the Home country the unit labour requiremrents for apples and bananas are repectively 3 and 2. In the Foreign country the unit labour requirements for apples and bananas are 5 and 1 respectively. The Home country has a labour force of 1200 and the Foreign country has a labour force of 800. Graph the Production Possiblity Frontiers for each of the two countries. What are the prices of apples in terms of bananas in both countries in the absence of trade? Why? Construct the world relative supply function. Suppose that the world relative demand takes the following form: demand for ap- ples/demand for bananas = banana price/apple price. Draw the world relative de- mand curve superimposed on the world relative supply curve. What is the equilibrium relative price of apples under free trade? Describe the pattern of trade. Show that each of the two countries gain from trade. Suppose that instead of 1200…According to the Heckscher-Ohlin or Factor Proportions model, countries have comparative advantage in the good O Requires proportionately more of every factor than the goods they import. O Employs a relatively large amount of the factor that they have relatively more of than other countries. Employs a relatively large amount of their scarce factor. Uses intensively their scarce factor.
- why is the market for recycled aluminium good and the market for plastic bad in the US? Depict this with a firm input choice model. I understand that recycled plastic decreases in qualiy everytime it is recycled while aluminium does not and can be recylced without the decrease in quality, but I dont know how to depict this graphicallySean, a lecturer at Oxford University, is a staunch advocate of globalization. He asserts that globalization has benefited many people scientifically, culturally, and economically. Which of the following statements supports his assertion? O Globalization makes lifesaving devices, medicines, and technologies more readily available to the greater world population. O Globalization helps developed markets by making it easy for employers to move jobs to cheaper locations. O As a result of globalization and the spread of new technologies, levels of socioeconomic inequality have decreased. O As a result of globalization, 90 percent of all business investments are domestic.Assume that countries A and B operating in the immobile factor model have identical labor endowments. Both produce beer and pizzas. Country A has an absolute advantage in the production of beer, while Country B has an absolute advantage in the production of pizzas. Which of the following statements will be true? O Labor productivity of beer workers is higher in Country B. O Unit labor requirement for pizza production is lower in Country A. O Autarky price of beer will be higher in Country B. O Autarky price of pizza will be higher in Country B. O Country B produces more beer than Country A.