If the price of a good rises, then the effect on the income of the factors that are used intensively in its production will be
A) to raise income by an absolute amount that is less than the rise in prices.
B) to raise income by an absolute amount that is more than the rise in prices.
C) to raise income by a smaller percentage than the rise in prices.
D) to raise income by a greater percentage than the rise in prices.
E) to cause income to fall.
Question 2 - If tastes are identical between countries, then comparative advantage is determined by
A) supply conditions only.
B) demand conditions only.
C) supply and demand conditions.
D) Can't tell without more information.
Question 3 - The roots of the European Union are in agreements within the coal and steel industries.
Indicate whether the statement is true or false
Question 4 - Based on Table 9.3, the capital account balance is equal to
A) +25.
B) -25.
C) -125.
D) +125.
E) -225.
Question 5 - The Stolper-Samuelson Theorem predicts
A) the level of productivity in export industries.
B) which factors are abundant.
C) the income distribution effects of trade.
D) which goods will be exported.
E) the importance of intraindustry trade.
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