A critical element of the Heckscher-Ohlin model is that a. Different goods display different factor intensities in their production. b. Some countries have no comparative advantage in anything.
Q: If $2000 is invested at 7% interest compounded continuously, calculate its value after 3 years
A: Given the invested amount = $2000 Interest rate = 7% Time period = 3 years
Q: 12. If the Real GDP for year 1 was $57,900 and for year 2 it was $ 60,000, determine the percentage…
A: Economic growth is determined as the rise in the capacity of the economy for producing the services…
Q: A monopolist options: always earns profits in the long run. may earn profits in the long…
A: A monopolist is the market where there are many buyers but only one seller. In this market product…
Q: If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decrease from…
A: Price Elasticity is a proportion of the connection between an adjustment/change of the quantity…
Q: 6. Theory suggests that frictional unemployment in Canada will decrease if workers have higher…
A: Natural rate of unemployment = Structural unemployment + Frictional unemployment Natural rate is…
Q: Calculate the Money Multiplier, Excess Reserves, Required Reserves and Total Potential Deposit…
A: Given that, rrr = .12 Total Deposits = $6300 Total Reserves = $5500
Q: Since it is counted as an investment, why doesn't the purchase of equipment from Caterpillar (a U.S.…
A: Gross domestic product (GDP) measures the market value of final goods and services produced within…
Q: QUESTION 1 a) Under what conditions that a discount bond has a negative nominal interest rate? Is it…
A: Nominal interest rate is given as the sum of real interest rate and inflation rate. The Nominal…
Q: Total budget expenditure is 8100 and the total budget receipts are 6101 find the budgetary deficit
A: In economics we define a budget deficit as a deficit which is actually multidimensional and which…
Q: Since it is counted as an investment, why doesn't the purchase of equipment from Caterpillar (a U.S.…
A: Gross domestic product estimates the money-related worth of definite labor and products that is,…
Q: The University is considering the level of light to provide at night on campus. Cynthia and Shirley…
A: Marginal benefit is the total amount which is consumer willing to pay for marginal or per additional…
Q: Two mutually exclusive projects are being considered: Project Uno has a first cost of $12,500,…
A:
Q: Calculate elasticity using mid-point elasticity. Show all computations.
A: Mid point formula for elasticity = Change in Q/Change in P x P`/Q` Where P` = (P1+P2)/2 ,…
Q: If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decrease from…
A: An elastic interest is one in which the adjustment of amount requested because of an adjustment of…
Q: 28- Which of the following factors does NOT influence the price elasticity of demand of a prod the…
A: Price elasticity of the demand is considered as that economic activity or measure with basically…
Q: Find Indirect utility function of the following function U= max (X, Y) subject to the budget…
A: Maximize U = Max(X,Y) Subject to Px*X + Py*Y ≤M This is the problem with cornor solution, here at…
Q: Find the marginal efficiency of capital if the prospective yield is 291 and the supply price is 52.
A: The marginal efficiency of capital (mec) represents the profit percentage expected on an investment.…
Q: 1. Firms can expand or contract based on market conditions 2. Capital is fixed ? 3. Firms face…
A: Workers Total Output Marginal Product 0 0 -- 1 65 65 2 98 33 3 110 12 4 112 2 5 112…
Q: 2015: $29 in engine parts are imported into Canada and $22 in engine parts are produced in Canada.…
A: Answer to the question is as follows:
Q: 3. True or false? - Argue graphically and provide intuitions in the two-period consumption-saving…
A: Given information 2-period consumption model 2 periods: Current period and future period Government…
Q: Jenkins Ltd manufactures remote control cars which sells for $500 each. The fixed cost is $70000 and…
A: Fixed costs are the costs which can't be altered in the short run and on the other hand the variable…
Q: Suppose that on January 1, 2022, the price of a one-year Treasury bill with a face value of…
A: Given: The face value is = $1,000 The price value is = $926.78 The real interest rate turns out to…
Q: When the public stores less of their wealth in banks, the currency ratio will and the money…
A: Currency ratio is part of currency held by the public in cash relative to the bank deposits.…
Q: If you could afford to pay $850 per month for a house mortgage, and you plan on financing it at…
A: Compound interest is usually known to be as the interest which is exactly calculated by multiplying…
Q: Marginal cost is the one more unit of a good and opportunity cost of producing increases as…
A: Marginal cost refers to additional cost that is incurred by pricing one more unit of a good.
Q: Suppose that the MD = 5E and with its current techonlogy, the firm's MS is given by MS = 200 - 5E.…
A: Given information: MD = 5E MS = 200 - 5E
Q: Suppose the market supply curve in a competitive market is given by is Q-2p-10. At a price of $15,…
A: Producer surplus is the difference between how much a person would be willing to accept for given…
Q: Companies like Amazon and Facebook and Google are so dominant that they really have very little…
A: Oligopoly and Monopoly An oligopoly is a form of market where there are a few larger numbers of…
Q: C. Now that the price for physician visits is regulated and capped at $3 dollars. Use the graph…
A: Price and quantity for products is determined by the market forces demand and supply. Market…
Q: 5. Joe needs a new HVAC system for his home. He is comparing these three models. One Temp $7000…
A: Given that; The future worth of various alternatives will be calculated as part of the alternative…
Q: "While gasoline taxes and fuel economy standards can both be effective in increasing the number of…
A: The realities affirm that gas appraisals and mileage rules can both be strong in extending the…
Q: The short-run supply curve for a price-taking firm is given by: Select one: a. its short-run…
A: A firm operating in a perfectly competitive market is reffered to be as a price taking firm. This…
Q: Explain the two different concepts of purchasing power parity PPP and how they relate to the Law of…
A: Exchange rate - The exchange tells us about the worth of the currency of one country in comparison…
Q: 1- Provide one reason why there is so much advertising in the monopolistic competitive industry?
A: Monopolistic competition happens when an industry has many firms offering items that are…
Q: Mohamed wishes to deposit BD10,000 to a bank that will guarantee BD15,938.48 after eight (8) years.…
A: Here we need to assume the interest rate she is expecting from the bank. Then following calculation…
Q: SOLVE IT CORRECTLY AND DETAILS Q)Explain the relationship between inflation and unemployment, as…
A: Phillips curve explains relationship between inflation and unemployment. There is tradeoff between…
Q: A man wishes his son to receive $ 200000 after 10 years from now. What amount should he invest if it…
A: Given the information: Future value of investment = $200000 Time period = 10 years Interest rate =…
Q: The table below shows the total cost for producing various quantities of shampoos. Use the given…
A: Total cost is the sum of fixed cost and variable cost. Fixed cost remains the same at each level of…
Q: Consumption Investment 300 250 200 150 100 50 45⁰ 50 100 150 200 250 300, CAE Real GDP The graph…
A: Given information: We have given a simple economy without a government sector or a foreign sector In…
Q: What happens to the equilibrium price when there is an increase in demand and a decrease in supply…
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping other…
Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…
A: When average variable cost is given, total variable cost can be computed by multiplying AVC and…
Q: From March 26 to July 17, 2020, the share price of The Champion SA (C share) fell by 17% and that of…
A: Fixed costs are those costs that do not depend on the quantity produced or sold by the firms.…
Q: Explain why the Cedi continues to depreciate against most major international currencies and offer…
A: Currency depreciation, which often occurs under a floating exchange rate system when no official…
Q: A company produces and sells a consumer product and is ableto control the demand by varying the…
A: Relationship between price and demand p=38+2700D-5000D2 for D>1 Where D is the quantity demanded…
Q: You invested $5131 for 9 years at 4.82% per annum. How much more would you receive at the end of the…
A: Given, Principal = $5131 time = 9 years = 108 months rate = 4.82% annual = 0.4016% monthly The…
Q: 2 B agriculture Here's a production possibility frontier graph. In this example.... At point E,…
A: Production possibilities frontier shows the combinations of goods that can be produced by a country…
Q: Please judge whether the following function has the characteristics of CRS, IRS or DRS. F(K,L)= max…
A: We multiply K and L by a constant A >1 If after doing this we find that F(AK,AL) is > A(F(K,L)…
Q: Define risk aversion and give an example of a risk-averse person?
A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…
Q: From the FT in mid-June: “China has approved record amounts of investment to flow out of the country…
A: When accounting for Balance of payment of a country ,capital account takes into consideration the…
Q: You borrowed $200 and repaid $211 at the end of the year. During the year, inflation was 0.7%. What…
A:
22. A critical element of the Heckscher-Ohlin model is that
a.
Different goods display different factor intensities in their production.
b.
Some countries have no
c.
Trade may not be beneficial.
d.
Some countries have no absolute advantage in anything.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 1.Which of the following resources is the most rival? A- A music concert at a city park. B-A full moon. C-An interstate highway D-A zoo. E-The labor of a hair stylist 2.Which of the following is considered a basic economic question? A-What are the most advantageous terms of trade? B-When does marginal cost equal marginal benefit? C-Which economy enjoys a lower opportunity cost for this good? D-What is essential knowledge to pass on to the next generation? E-What goods and services should be produced?Give typing answer with explanation and conclusion According to classical economists, instead of mercantilism, which says countries should produce everything themselves, what should countries do? a. Use tariffs to protect local industries b. Create an organization that dictates how countries should trade c. Specialize in producing what they are good at producing, and import other goods d. Engage in trade wars to try to gain an advantagea.) Looking at the graphs, which nation has a stronger preference for 'Y'? Explain. b.) Looking at the graphs, which nation has comparative advantage in producing good 'X'. Why? c.) What do the points A and A' on the graphs represent? Explain.
- 20)In economics, a person who can produce a good at a lower cost than another person is said to have ________________ in the production of that good. * a)a consumer surplus advantage. b)a comparative advantage. c)production possibilities. d)an absolute advantage.4. The branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance is .1. Which of the following is NOT a normative statement? Select one: a. higher interest rates should lead to increased savings b. inflation is more harmful to Ghana than unemployment c. if its minimum wage falls, Japan will be a better place d. the benefits to the economy of improved equity are less than the costs of reduced efficiency 2. Which of the following is not necessarily an outcome of international trade? Select one: a. goods being obtained at lower opportunity cost b. people specialize in activities in which they have a comparative advantage c. all individuals within trading countries benefit d. more efficient resource use 3. If a 8 percent increase in income results in a 10 percent increase in the quantity demanded of lattes, what is the income elasticity of demand for lattes, and what type of good is lattes? Select one: a. negative, and therefore lattes are a normal good b. negative, and therefore lattes are an inferior good c. positive, and therefore lattes…
- Graph 1: Draw a production possibilities model with 4 points labelled A, B, C, D, one inside, two on, and one outside the production possibilities curve. Explain the 4 points in terms of scarcity, choice and efficiency. Graph 2: Draw a production possibilities model which illustrates economic growth. Graph 3: Draw a production possibilities model and using your own numbers, explain the concept of the law of increasing opportunity cost. Graph 4: Draw a production possibilities model for North Korea and label the Y axis Guns, and the X axis Butter. Put two points, A and B, on the curve. Using the two points, explain the concept of government (or market) failure.Graph 1: Draw a production possibilities model with 4 points labeled A, B, C, D, one inside, two on, and one outside the production possibilities curve. Explain the 4 points in terms of scarcity, choice, and efficiency. Graph 2: Draw a production possibilities model which illustrates economic growth. Graph 3: Draw a production possibilities model and using your own numbers, explain the concept of the law of increasing opportunity cost. Graph 4: Draw a production possibilities model for North Korea and label the Y axis Guns, and the X axis Butter. Put two points, A and B, on the curve. Using the two points, explain the concept of government (or market) failure.More than 200 years ago, Adam Smith argued that the wealth of nations depends upon gains from (a) specialization and trade, (b) expanding the size of the market, and (c) discovering better (more productive) ways of doing things. Explain why you either agree or disagree with Smith's view.
- Economic Scenario: Country A has one of the highest real GDP while Country B has one of thehighest real GDP per capita in the world respectively. a.what are the (3) comparative differences between real GDP and real GDP per capita. b.What does this tell us, about the well-being of the residents of Country A and B?Consider two countries, Zerka and Xena. In Zerka total annual output is worth $500 million and people work 40 million hours. In Xena total annual output is worth $600 million and people work 50 million hours. A) From the information above, in which country is productivity higher? B) Economists use the term ______________________________ to refer to the ability to produce a good using fewer inputs than another producer. C) Economists use the term ______________________________ to refer to the ability to produce a good at a lower opportunity cost than another producer.The principle of comparative advantage does not provide answers to certain questions. One of those questions is Do specialization and trade benefit more than one party to a trade? Is it absolute advantage or comparative advantage that really matters? How are the gains from trade shared among the parties to a trade? Is it possible for specialization and trade to increase total output of traded goods?