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Which of the following statements regarding the heckscher-ohlin model and Ricardian trade theory is TRUE?
a. Both the Heckscher-Ohlin and Ricardian models are current, relevant, and applicable in explaining world trade patterns
b. The Ricardian model is an excellent simplified introduction to world trade patterns, but the Heckscher-Ohlin model is more relevant in regards to explaining empirical evidence
c. The Ricardian model is useless in explaining trade patterns, and the H-O theory, though applicable, is not sufficient for explaining real world trade patterns
d. The Ricardian model is extremely useful in analyzing trade patterns, but the H-O model is only useful in theoretical applications.
Lucas’ point of view, what are the limitations of the Keynesian model? What improvements does he suggest?
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Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations. The price of input A decreases.
Effects of consumption function.
An effort to reduce energy costs, a major university has installed more efficient lights as well as automatic sensors that turn the lights off when no movement is present in a room
The elasticity of demand in the local hardware industry is -2, while in the video market it is. Which industry has a higher markup over marginal cost (as a percentage of price)?
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the circular flow of income in an governed economy
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