Consider a Two-Country Two-Good Model Where Labor Is the Only

question 36

Multiple Choice

Consider a two-country two-good model where labor is the only factor of production. Each country faces an increasing-cost production-possibility curve. In this model the amounts of both goods that are produced in a country in no-trade situation are determined by:

• A)the relative prices of the goods.
• B)the factor endowments in the economy.
• C)technology differences between the industries.
• D)the aggregate demand in the economy.

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Definitions:

Unanimous Opinion

A judicial decision where all judges or justices agree on the outcome and reasoning of a case.

Judges

Officials appointed or elected to preside over court proceedings, making legal judgments and decisions.

Justices

Judges of supreme or high courts who hold the authority to interpret and apply the law in the judicial system.

Executive Branch

The branch of government responsible for enforcing laws, headed by the President at the national level or a governor at the state level.