Exam (elaborations)
Econ 321 Exam 1 Review 2022/2023# 22 questions and correct answers.
- Course
- Institution
Econ 321 Exam 1 Review 2022/2023# 22 questions and correct answers.
[Show more]
Seller
Follow
NurseSallyD
Reviews received
Content preview
Econ 321 Exam 1 Review 2022/2023#22 questions and correct answers.
The main reason for trade according to the Ricardian model is - -countries have
different production technologies and as such, have an advantage in productivity in
different goods and can then trade.
-When a country requires fewer resources to produce a product than other countries, it
is said to have: - -absolute advantage but not necessarily comparative advantage in the
production of the product
-According to the Ricardian model, a country that has comparative advantage in the
good on the x-axis of the PPF, will have - -a flatter slope than its trading partner
-Ricardo's theory made an implicit number of assumptions, including which of the
following? - -Nations had balanced trade with their partners, and there were no barriers
to trade (free trade).
-According to the Ricardian principle of comparative advantage, - -there would be
gains due to specialization only with subsequent trade.
-In the Ricardian model, the extra production gained from the employment of an
additional unit of labor - -does not change, as more labor is employed to produce a good
-Assume that MPLt = 10 tennis rackets and MPLb = 5 baseball bats. If the economy has
500 workers, then the economy can produce - -2500 rackets and 1250 baseball bats
-If a consumer moves to a higher point on her indifference curve, her satisfaction - -
Remains unchanged
-One way to determine that a nation has gained from trade is that it - -consumes
outside of its PPF and produces along its PPF
-A production possibilities curve that is bowed out represents the case of.......................
while a production possibilities curve that is a straight line represents the case
of.............................. - -increasing costs; constant costs
-The Ricardian two-country, two good model predicts that there are potential benefits
from trade, but NOT - -the effect of trade on income distribution
-According to the specific factors model, International trade can have important effects
on the distribution of income because - -some resources are immobile in the short run
-In the specific factors model - -Land is a fixed factor, Capital is a fixed factor, Labor is
a mobile factor
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NurseSallyD. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78861 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now