According to the Rybczynski Theorem,at Constant World Prices,if a Country

question 42

Multiple Choice

According to the Rybczynski theorem,at constant world prices,if a country experiences a gain in its capital stock it will produce

• A)more of the capital intensive good and less of the labor intensive good.
• B)more of both goods.
• C)less of the capital intensive good and more of the labor intensive good.
• D)less of both goods.

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Definitions:

Progressive

Pertaining to a taxation system in which the tax rate increases as the taxable amount increases, imposing a higher percentage rate on the wealthy to ensure equity.

Consumption Tax

A tax on the purchase of goods or services, levied at the point of sale, designed to tax spending rather than income or savings.

Encourage Consumption

Measures or strategies aimed at increasing consumer spending and demand for goods and services.

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.