Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Solved Assignments
Asked Questions
Answered Questions
qexplain why one can write the demand for money as follows md p l r yanswer the collective money demand is proportional to the price level imagine
q what will be the effects of an increase in the money supply on the interest rate answer an enhance in the money supply will origins the interest
q at the conclusion of world war i germany as a punishment was obliged to take a large transfer to france in the form of reparations is it possible
q it is impossible for economic growth in a small country to lower that countrys economic welfare regardless of the bias of the growth explainanswer
2 if a countrys growth is biased in favor of its import this should unequivocally improve its terms of trade and its economic welfare discussanswer
q other things being equal a rise in a countrys terms of trade enhances its welfare what could happen if we relax the ceteris paribus assumption and
q in autarky country p was producing at point 5 with trade could its production point be found above or below point 5 explain why what must happen
q if trade were to open up between r and p where could the world terms of trade locate in the figure above somewhere on the pcpf axis could relative
q why are prices of factors of production not equalizedanswer again this statement may not or may be argued to be true on the other hand the
q why do we observe the leontief paradoxanswer there are several possible answers that they may be categorized into three groups one would argue
q why is the ho model called the factor-proportion theoryanswer the ho model survey the limitations and the nature of presumptuous that the sole
q countries do not in fact export the goods the ho theory predicts discussanswer this statement isnt true that though one may find several cases
q countries that are willing to tolerate an unusually high quantity of pollution relative to their supplies of other factors would leads to export
q international trade leads to complete equalization of factor prices discussanswer this statement is usually truebut under a limited and strict
q there is frequently a conflict between short-term and long-term interests in trade discussanswer in trade models that the short term is usually
q no country is abundant in everything discussanswer the idea of relative country factor abundance is like factor intensities a relative concept
q a good cannot be both land- and labor-intensive discussanswer in a two good or two factor models for instance the original heckscher-ohlin
q calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and landanswer for the reason
q suppose the relative price of good 1 falls relative to the price of what happens to the wage rateanswer the labour component of the price of 1
q in 1986 the price of oil on world markets dropped sharply since the united states is an oil-importing country this was widely regarded as good for
q even though it is very clear in the context of the specific factors model that an expansion of international trade will make losers as well as
q one reason international trade has a powerful effect on the distribution of income within countries is that some factors are specific and therefore
q it is claimed that the persistence of protectionism is often the result of the fact that those who lose from trade are usually a much more informed
q the specific factors model clearly illustrates how the expansion of trade can have significant distributional effects on the relative incomes of
q the specific factors model makes a distinction between general-purpose factors that can move between sectors and factors that are specific to