Do not use chatgpt Suppose a country is abundant in capital and the relative price of the good that intensely uses capital for its production increases. The Stolper-Samuelson theorem predicts that it will:○ A. see wage increases for labor, because the demand curve (relative to capital) has moved right.OB. see wage decreases for labor, because of the lower demand for the good that uses capital intensively.C. see wage decreases for labor, because of the higher demand for the good that uses capital intensively.D. see wage increases for labor, because the supply curve has moved left. This exercise applies the basic Ricardian model of one factor and two goods. The table below contains the output per hour worked in two countries, Home and Foreign, for each of two goods.SausageMilkForeign3 pounds6 gallonsHome6 pounds4 gallonsThe productivity data given above indicates that the relative price of sausage in Home (PS) isgallonspoundOA. 1.5O B. 0.5○ C. 2O D. 0.67

1. HomeForeignSausage6 Pounds3 PoundsMilk4 Gallons6 GallonsNow, the given question asks us the…

Answered: Suppose a country is abundant in…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...

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Similar questions

Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
As technological change makes us more sedentary and food costs increase, obesity is likely. What factors do you think may limit obesity?
Explain what the Industrial Revolution was and where it began.
Exercise D25 What role does government play in stabilizing the economy and what are the tradeoffs that must be considered?
Say that the average worker in Canada has a productivity level of 30 per hour while the average worker in the United Kingdom has a productivity level of 25 per hour (both measured in U.S. dollars). Over the next five years, say that worker productivity in Canada grows at 1 per year while worker productivity in the UK grows 3 per year. After five years, whiz) will have the higher productivity level, and by how much?
Say that the average worker in the U.S. economy is eight times as productive as an average worker in Mexico. If the productivity of U.S. workers grows at 2 for 25 years and the productivity of Mexicos workers grows at 6 for 25 years, which country will have higher worker productivity at that point?
Give the three reasons that explain why the division of labor increases an economys level of production.
What is comparative advantage?
What are the three ways that societies can organize themselves economically?
In its recent report, The Conference Boards Global Economic Outlook 2015, updated November 2014 (http://www.conference-board.org/data/ globaloutlook.cfm), projects Chinas growth between 2015 and 2019 to be about 5.5%. International Business Times (http//www.ibtimes.com/us-exports-china-have rown-294-over-past-decade- 1338693) reports that China is the United States third largest export market, with exports to China growing 294 over the last ten years. Explain what impact China has on the U.S. economy.
Refer back to the Work It Out about Comparing the Economies of Two Countries and examine the data for the two countries you chose. How are they similar? How are they different?
What do the growth accounting studies conclude are the determinants of growth? Which is more important, the determinants or how they am combined?

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