In the HO model, the production possibility frontier is bowed out due to the assumption of
A) identical tastes.
B) different factor intensities in the production of the two goods.
C) increasing returns to scale.
D) Two of the above.
B
Economics
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Monetary policy involves the use of federal government spending to change the money supply.
a. true b. false
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In the simple circular flow model containing just households and business firms, the entire product flows to ________ in exchange for ________
A) business firms, labor services B) business firms, wages C) households, consumer expenditures D) households, labor services
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