Business, 24.03.2021 16:40 brandisouthern9

Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two goods, timber and televisions. Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two industries. When the Home country moves into doing free trade with the Foreign country, the Home country exports timber. 16 points total, 2 points each. For each statement below, determine whether it is true or false, and then briefly explain why?

a. The Home country produces only timber under free trade.
b. Going from closed economy to free trade, the opportunity cost of TV increases in the.
c. Labor employment increases for the TV industry in Home.
d. The workers’ purchasing power for TV increases in the Home country.
e. Capital owners are better off under free trade in the Home country.
f. After free trade, the rental rate for land increases relative to the price of TV in the Home country.
g. The marginal product of labor for the timber industry increases under free trade in the Home country.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 15:00, UratazZ

Because gloria's immediate concern was the perceived gender discrimination, she would be more concerned about than intent, resultsresults, intentstatistics, trendsrace, gendergender, race

Answers: 2

continue

Business, 22.06.2019 17:30, neriah30

Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months. fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.

Answers: 1

continue

Business, 22.06.2019 22:00, meramera50

Only the united states has embassies. true or false

Answers: 2

continue

Business, 23.06.2019 02:00, alexbrafford

Abc electronics wants someone to install a top-of-the-line security system in its two buildings, a system that not only sounds an alarm but also simultaneously notifies authorities and the company president. video surveillance of the premises should also be a capability of the security system. n order to obtain price quotes, what should the company write? a. an unsolicited proposal b. an internal proposal c. an external proposal d. a request for proposals

Answers: 3

continue

You know the right answer?

Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two...