Question

determine whether TRUE/ FALSE/ UNCERTAIN and Explain 3. According to the Stopler- Samuelson Theorem, there are...

determine whether TRUE/ FALSE/ UNCERTAIN and Explain
3. According to the Stopler- Samuelson Theorem, there are relative winners and losers from international trade, but no absolute losers.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

3). The above statement is true.

According to Stopler- Samuelson theorm, there are relative winners and losers from international trade but there are no absolute losers. The Stolper–Samuelson theorem is a basic theorem in Heckscher–Ohlin trade theory. It describes the relationship between relative prices of output and relative factor rewards—specifically, real wages and real returns to capital. The SS theorem links commodity prices and factor prices. An increase in the price of the capital-intensive good increases the return to capital and decreases the return to the other factor (labor). Likewise, an increase in the price of the labour- intensive good increases wage and reduce rent. The stopler- samuelson theorm is a theory of international tarde mentions that due to international trade some gains and others lost, but there are no absolute losers in the international trade.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the Heckscher–Ohlin model and the Stolper–Samuelson theorem. What do they suggest about what are the...
Consider the Heckscher–Ohlin model and the Stolper–Samuelson theorem. What do they suggest about what are the gainers and the losers from international trade?
True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start...
True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. a. Nominal interest rates are always higher than real interest rates. Answer b. If the lockdown measure due to a further...
Question 1: True, False or uncertain (16 marks) Explain whether each of the following statement is...
Question 1: True, False or uncertain Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. The quality and logic of arguments determine your marks. (4 marks each) If the lockdown measure due to...
Answer whether the statement is True or False or Uncertain. EXPLAIN in detail. According to the...
Answer whether the statement is True or False or Uncertain. EXPLAIN in detail. According to the wealth substitution effect, private saving increases due to social security taxes. Government’s health care program can solve both moral hazard and adverse selection problems. The only reason why countries have social security is to improve the economic status of the aged. As education is a private good, the government should not provide it. Individuals always prefer cash-transfers to in-kind transfers.
STATE whether the statement is True or False or Uncertain. EXPLAIN in detail. According to wealth...
STATE whether the statement is True or False or Uncertain. EXPLAIN in detail. According to wealth substitution effect, private saving increases due to social security taxes. Government’s health care program can solve both moral hazard and adverse selection problems. The only reason why countries have social security is to improve the economic status of the aged. As education is a private good, government should not provide it. Individuals always prefer cash-transfers to in-kind transfers.
TRUE/FALSE/ OR UNCERTAIN: Explain whether each point is true, false, or uncertain and use diagrams and...
TRUE/FALSE/ OR UNCERTAIN: Explain whether each point is true, false, or uncertain and use diagrams and equations to prove so if relevant. Based on the Solow growth model, different saving rates explain varying economic growth rates across countries we observe in the real economy. A competitive equilibrium of the Solow growth model is achieved only when the economy reaches the steady state. If the consumer’s preferences satisfies the “more is better” assumption, the indifference curves representing her preferences are necessarily...
Explain whether the following statements are true, false, or uncertain.
Explain whether the following statements are true, false, or uncertain.a. “An increase in the number of employed workers always means a reduction in the unemployment rate.”b. “An increase in the unemployment rate always means a decrease in the economy’s participation rate.”
Determine whether each statement is TRUE/FALSE or UNCERTAIN Theoretical models of On-the-Job Training (OJT) predict that...
Determine whether each statement is TRUE/FALSE or UNCERTAIN Theoretical models of On-the-Job Training (OJT) predict that after participating in a training event (whether it be “general” or “specific” training), the worker’s net wage will increase relative to the pre- training wage and will be equal to the worker’s value of marginal product or labour.
Determine whether the following statement is TRUE, FALSE or UNCERTAIN. Explain your answer carefully using a...
Determine whether the following statement is TRUE, FALSE or UNCERTAIN. Explain your answer carefully using a supply and demand diagram. The score for this exercise will be based on the quality of your explanation. “If a price is not an equilibrium price, there is a tendency for price to move to its equilibrium level. Regardless of whether the price is too high or too low to begin with, the adjustment process will increase the quantity of the good traded.”
1. True/False/Uncertain: There may always be someone who loses from trade. (Hint: when T/F/U questions do...
1. True/False/Uncertain: There may always be someone who loses from trade. (Hint: when T/F/U questions do not specify a model, your answer must consider all models that could apply, explain how they apply, and what their response would be.) 2. True/False/Uncertain: According to the Ricardian model, relative prices are always dictated by your country's labor productivity in each industry. 2. True/False/Uncertain: According to the Ricardian model, relative prices are always dictated by your country's labor productivity in each industry.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT