If SID is reduced by one half, what must be done to mAs to maintain a constant receptor exposure?

Assume that Home and Foreign have the following factor endowments:         Home                                       Foreign         L = 100                                     L*= 200         T = 25                                        T*= 100    a) Which country is labor abundant and which country is land abundant? If both countries have identical Leontief preferences, which country will have the lower relative price for clothes (lower Pc/Pf) in autarky? b) If the relative price of clothes increases at Home (maybe due to a change in consumer preferences such that xc > xf), discuss how this increase in the relative price of clothes at Home will affect both factor prices (w and r), the allocation of labor and land between both sectors, and the production of both goods at Home in autarky.

The difference between the value of a country’s exports and their imports is known as its ____________.

In the Ricardian model where Home and Foreign have different technology in producing cheese and wine, if opening up to trade at Home does not lead to a change in the relative price of its goods, then all of the following are true EXCEPT:

In the Ricardian model with free trade, assuming both countries specialize in the good in which they have a comparative advantage, an increase in the size of the population in Foreign (L*) will __________ Foreign’s terms of trade and __________ Home’s terms of trade.

Consider trade between two countries that have the following unit labor requirements for the production of cheese and wine as well as endowment of labor (L):         Home                                       Foreign         ac= 20                                       ac*= 16         aw= 5                                         aw*= 2         L = 800                                     L* = 160 a) Which country has an absolute advantage in cheese and which in wine? Which country has a comparative advantage in cheese and which in wine? What are the relative prices of cheese (Pc/Pw) at Home and in Foreign assuming they are in autarky (closed economies)? b)  If consumer preferences are given by U( xc , xw ) = xc3/4xw1/4 , find the equation for the relative demand curve (xc/xw). Use this to find the free trade price if both countries engage in free trade. Would both countries gain from trade?

The gravity model attempts to explain the _________ of two countries as dependent on their size/GDP and the _________.

The ___________ can be used to determine comparative advantage by using a country’s export share of a good and comparing it to the world’s export share of that good.

Which of the following groups would not fall under the broad definition of protected classes?

The employment of individuals in a fair and nonbiased manner is called