For a simple economy (no government, no foreign sector), the condition for equilibrium can be stated correctly as
a. saving equals actual investment.
b. saving equals inventory accumulation.
c. saving equals planned investment.
d. inventory accumulation equals planned investment.
c
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The HeckscherOhlin model assumes that factors of production can move freely _______, but cannot move _______.
a. domestically; internationally b. after they are fully trained; before the training period is over c. internationally; domestically d. within unskilled occupations; into highskill jobs
Refer to Figure b. Suppose consumers choose to consume water in two different states, sunny weather, WS and during a hurricane, WH. As the consumer moves from point A to B along the indifference curve, the variability of consumption:
A. decreases.
B. increases.
C. remains constant.
D. increases for one good, but decreases for the other.