The ability of the DVCs to use the technologies of the IACs is somewhat limited because:
A. the IACs have patents on most of their technologies.
B. the IACs and the DVCs have much different resource endowments.
C. the technologies of the IACs rely heavily on unskilled labor.
D. IAC technologies are labor-intensive, while DVC technologies are capital-intensive.
B. the IACs and the DVCs have much different resource endowments.
You might also like to view...
Suppose for every dollar change in household wealth, consumption expenditures change by $0.05
If real household wealth declines by $45 billion, potential GDP is $120 billion, and the multiplier effect for the second year after an expenditure shock is 1.1, what is the total change in output relative to potential for the second year? A) -1.28% B) -1.73% C) -2.06% D) -5.78%
Suppose Bart's MRS for sodas with chips is 6 bags of chips per soda. Also assume that Lisa's MRS for sodas with chips is 8 bags of chips per soda. Assuming that these rates of substitution don't depend on the amounts consumed, which of the following trades would make Bart and Lisa better off?
A. Bart gives Lisa 9 bags of chips in exchange for a soda. B. Bart gives Lisa 7 bags of chips in exchange for a soda. C. Bart gives Lisa 6 bags of chips in exchange for a soda. D. None of these trades is mutually beneficial.