According to the Rybczynski theorem, at constant world prices, if a country experiences a gain in its capital stock it will produce
A) more of the capital intensive good and less of the labor intensive good.
B) more of both goods.
C) less of the capital intensive good and more of the labor intensive good.
D) less of both goods.
A
Economics
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Why is the PPF bowed out in the HeckscherOhlin model?
A. Capital is specific to the production of one good. B. Labor is specific to the production of the other good. C. There are increasing opportunity costs of producing each good. D. Labor is not perfectly mobile between the production of the two goods.
Economics
Which of the following will cause the aggregate demand curve to shift to the left?
A) An increase in the price level B) An increase in the interest rate C) An increase in money demand D) An increase in investment expenditures
Economics