The ppf of a country will be skewed toward the good that:
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Explanation:
LCD TVs are capital intensive, and tennis rackets are labor intensive. Suppose Canadahas $100 billion of capital and 2 million workers and Mexico has $10 billion of capitaland 20 million workers. According to the HO model:32.Why do larger countries (in terms of economic size) tend to have lower ratios ofinternational trade to GDP than smaller countries?33.How do consumers benefit from trade among monopolistically competitive firms?34.Suppose that imports and exports in an industry are $100 million and $200 million,respectively. Will the index of intra-industry trade for this industry rise, fall, or remainunchanged if exports fall to $100 million?A)There is not enough information to determine how the index will change.B)It will remain unchanged.C)It will fall.D)It will rise.35.Assume that Home and Foreign can produce beer and cloth. If the MPLc/MPLbforForeign is 2/5 and MPLc/MPLbfor Home is 1, then Foreign and Home have acomparative advantages