When the demand for products competing with imports falls, demand for the specific factors used in their production falls and:
a. the relative prices (earnings) of these specific factors will fall disproportionally.
b. the relative prices (earnings) of these specific factors will rise disproportionally.
c. the relative prices (earnings) of these specific factors will fall by the same rate as for all resources.
d. the employment of these specific factors will rise disproportionally.
Answer: a. the relative prices (earnings) of these specific factors will fall disproportionally.
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Among the accomplishments of Nobel Laureate Simon Kuznets is his pioneering research on
a. the sunspot theory of cycles b. war-induced cycles c. population-induced cycles d. innovation cycles e. housing cycles
To say that a price floor is binding is to say that the price floor
a. results in a shortage. b. is set below the equilibrium price. c. causes quantity supplied to exceed quantity demanded. d. All of the above are correct.