The most important item in the public assistance (welfare) package is

The law of diminishing marginal returns says that as the firm uses more of ________, with a given quantity of ________, the ________ product of the variable input eventually diminishes

A) a fixed input; variable inputs; marginal B) all inputs; capital; average C) a variable input; fixed inputs; average D) a variable input; fixed inputs; marginal

Suppose Korea exports skilled labor-intensive goods like construction equipment to the rest of the world and imports clothing, an unskilled labor-intensive good. Both the goods use skilled labor and unskilled labor as their only inputs. Recently the skilled labor endowment of Korea has increased substantially, but the size of the unskilled labor force has remained unchanged. a. What is the effect of the change in endowment on the shape and position of the production-possibility curve of Korea? Illustrate your answer with the help of a suitable diagram.b. What is the effect of the change in factor endowment on the actual production quantities of the two goods in Korea, assuming the product price ratio remains unchanged in the international market? Explain and illustrate graphically.c.

Assuming the product prices are unchanged, what is the effect of the change in factor endowment on Korea's willingness to trade? Explain, using your diagram. What will be an ideal response?