QUESTION 9 The immobile and specific factor models attempted to improve on the Ricardian model by introducing the assumption of: O perfect competition. O costless movement of labor between countries. O two factors of production, capital and labor. O prohibitive costs associated with movement of labor between industries. O homothetic demand.
QUESTION 9 The immobile and specific factor models attempted to improve on the Ricardian model by introducing the assumption of: O perfect competition. O costless movement of labor between countries. O two factors of production, capital and labor. O prohibitive costs associated with movement of labor between industries. O homothetic demand.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:QUESTION 9
The immobile and specific factor models attempted to improve on the Ricardian model by introducing the assumption of:
O perfect competition.
O costless movement of labor between countries.
O two factors of production, capital and labor.
O prohibitive costs associated with movement of labor between industries.
O homothetic demand.
QUESTION 10
In the immobile factor model, trade leads to:
O increase in production efficiency.
O decrease in production efficiency.
O increase in total consumption of the two countries.
O increase in consumption efficiency.
O decrease in the production of the import good.
QUESTION 11
In the immobile factor model, the price of the outputs and factors are determined such that:
O all markets are in equilibrium.
O firms earn the highest economic profit possible.
O revenues are maximized.
O the product market is in equilibrium.
O sales are maximized.
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