The HO theorem states that a country will have comparative advantage in the good whose production is relatively intensive in the ________ with which the country is relatively abundant

Britain taxed windows from 1696 until 1851 . Under the 1747-57 tax rates, you would pay no tax if your home had 0 – 9 windows but if your home had 10 – 14 windows you would pay a tax of 6 pence per window for every window in your home

a. In what way is the window tax similar to the U.S. income tax? b. In what way is the window tax different from the U.S. income tax? c. Do you think from 1747–1757 the number of new homes with 9 or fewer windows increased from the pre-1747 days? Explain.

If Spain is capable of producing either tapas or soccer balls or some combination of those two products, then Spain should:

A. produce the good it has an absolute advantage in producing. B. produce the good it has a comparative advantage in producing. C. remain self-sufficient if it can produce both efficiently. D. trade only if it possesses the absolute advantage in the production of both goods.