Other things constant, the elimination of factor price distortions in developing countries would most likely
(a) decrease rural-urban migration.
(b) have little effect on rural-urban migration.
(c) increase rural-urban migration.
(d) increase urbanization.
A
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In the specific factors model, which of the following will increase the quantity of labor used in cloth production?
A) an increase in the price of cloth relative to that of food B) an increase in the price of food relative to that of cloth C) a decrease in the price of labor D) an equal percentage decrease in the price of food and cloth E) an equal percentage increase in the price of food and cloth
Which of the following is true?
a. Cost-reducing automated production techniques will expand output directly and/or release scarce resources for the expansion of output in other areas. b. Automated production processes are generally adopted regardless of whether they reduce costs. c. Use of the most advanced technology will always minimize the cost of a productive activity. d. Automated production processes eliminate jobs and, thereby, endanger our future living standards.