1. True/False Questions (a) The Specific Factors Model is a short-run model because all production factors are allowed to be adjusted. (b) The PPF is curved for both the Specific Factors Model and Heckscher-Ohlin Model since more than one production factor is being used. (c) Suppose the US is a more capital-abundant economy than China. We would expect the trade war to be harmful to capital owners. (d) In the Specific Factors Model, if the minimum wage is set below the market equilibrium wage, there still will be unemployment generated by this minimum wage policy. (e) The relative price is the only changed condition after the market integration.

1. True/False Questions (a) The Specific Factors Model is a short-run model because all production factors are allowed to be adjusted. (b) The PPF is curved for both the Specific Factors Model and Heckscher-Ohlin Model since more than one production factor is being used. (c) Suppose the US is a more capital-abundant economy than China. We would expect the trade war to be harmful to capital owners. (d) In the Specific Factors Model, if the minimum wage is set below the market equilibrium wage, there still will be unemployment generated by this minimum wage policy. (e) The relative price is the only changed condition after the market integration.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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