Which of the following is most likely to be an untraded good in a Ricardian 2 country, multi good model?
Which of the following had been confirmed by empirical test of the Ricardian model?
Why is it that if an industry is operating under conditions of internal scale economies then the resultant equilibrium cannot be consistent with the pure competition model?
Yes. If the scale economies were external to the firm, then there is no reason why the firms may not be in perfect competition.
Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies?
External economies of scale will ____ average cost when output is ____ by ___.
if 2 countries begin trade and both produce a product subject to external economies of scale, then the country with the ____ rate of production will _____ production until it controls ___ of the market.
Restaurant meals are an example of a _____ good and clothing is an example of a ______ good. The pattern of interregional trade is determined primarily by _______.
The slope of a country's ppf with cloth measured on the horizontal and food measured on the vertical axis in the specific factors model is equal to ______ and it________ as more cloth is produced.
In the specific factors model, which of the following will increase the quantity of labor used in cloth production?
in the specific factors model, the effect of an increase in the productivity of labor in the production of cloth will cause an _________in the quantity of labor used to produce cloth, a_______in the quantity of labor used to produce food and an______in the wage rate.
The slope of a country's ppf is equal to_______and the optimal ppf point is located where the slope is equal to______. Assume that output of good Y is measured on the vertical axis, output of good X is measured on the horizontal axis, MPL is the marginal product of labor with a subscript indicating which good, P is the price of a good, and w is the horizontal rate.
In the specific factors model, a 0% , increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ____, the production of cloth to_______, and the production of food to________.
In the specific factors model, a 5% increase in the price of food accompanied by a 10% increase in the price of cloth will cause __________ in the welfare of labor, ________in the welfare of the fixed factor in the production of food, and____in the welfare of the fixed factor in the production of cloth.
The relative price of a unit of cloth in the small isolated country of Moribundia is 5 unites of food. When the central city puts in an airstrip, the country is able to engage n trade. If the relative price of cloth in the outside world i 3 units of food, the this country will export ______and_______factors used in the production of ______will benefit.
In the specific factors model, the effects of trade on welfare are______for mobile factors,_____for fixed factors used to produce exported goods, and ______for fixed factors used to produce imported goods.
In the specific factors model, the effects of trade on welfare overall are________and for fixed factors used to produce the exported good they are_____.
In the specific factors model, the effects of trade on welfare overall are________and for fixed factors used to produce the imported good they are_____.
In the 2 factor, 2 good HO model, the country with a relative abundance of ____ will have a ppf that is biased toward production of the _____good.
"no country is abundant in everything"