Suppose that Brazil is capital abundant and Chile is natural resource abundant.
If timber is natural resource intensive and computers are capital intensive, then according to the Stolper-Samuelson Theorem, the incomes of the owners of ________ are likely to rise in Brazil after trade with Chile begins. A) capital
B) labor
C) natural resources
D) It is impossible to determine which will be favored.
Question 2 - The learning curve describes the ________ relationship between ________ and ________.
A) inverse; unit cost; cumulative output
B) direct; unit cost; cumulative output
C) inverse; education; annual income
D) direct; education; annual income
E) direct; education; labor productivity
Question 3 - In the pre-World War I period, the United Kingdom imported mainly
A) manufactured goods.
B) services.
C) primary products including agricultural.
D) technology intensive products.
E) from the United States.
Question 4 - What three sources of revenue finance the EU budget?
What will be an ideal response?
Question 5 - Refer to the figure above. This country's imports equal
A) CE units of X.
B) GH units of Y.
C) CD units of X.
D) DE units of Y.
Question 6 - A learning curve relates ________ to ________ and is a case of ________ returns.
A) unit cost; cumulative production; dynamic increasing returns
B) output per time period; long-run marginal cost; dynamic increasing returns
C) unit cost; cumulative production; dynamic decreasing returns
D) output per time period; long-run marginal cost; dynamic decreasing returns
E) labor productivity; education; increasing marginal returns
Question 7 - In the pre-World War I period, the United Kingdom exported mainly
A) manufactured goods.
B) services.
C) primary products including agricultural.
D) technology intensive products.
E) livestock.
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