The assumption of increasing opportunity costs in the HO model increases the likelihood that
A) there will be incomplete specialization in production after trade begins.
B) countries will be better off with free international trade.
C) countries will maximize their standards of living from free international trade.
D) All of the above.
A
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In the second half of the 1990s a rapidly growing movement focused on the harm caused by international trade to
A) land owners in poor countries. B) capital owners in rich industrialized countries. C) land owners in rich industrialized countries. D) production workers in both rich and poor countries. E) terms of trade in developing countries.
A value of the absolute price elasticity of demand equal to 0.6 indicates that
A) a 6 percent increase in price leads to a 10 percent decrease in quantity demanded. B) a 10 percent increase in price leads to a 6 percent decrease in quantity demanded. C) a 0.6 percent increase in price leads to a 1 percent decrease in quantity demanded. D) a 1 percent increase in price leads to a 6 percent decrease in quantity demanded.