Question
Which theorem intends to show that the change in
commodity prices changes the distribution of real incomes between capital and labor?Solution
The Stolper-Samuelson Theorem: If there are CRTS and if both goods continue to be produced, a relative increase in the price of a commodity will increase the real return to the factor used intensively in that industry and reduce the real return to the other factor. A labor abundant country enters free trade then this will increase the relative price of labor intensive goods, make the workers better off and capitalists worse off. – Workers will support free trade while capitalists will oppose it. – Not only workers in labor intensive sectors will be better off, but also workers in capital intensive sectors
Select the number from among the given options that can replace the question mark (?) in the following series.
14, 22, 34, ?, 70
If ‘A’ denotes ‘addition’, ‘B’ denotes ‘multiplication’, ‘C’ denotes ‘subtraction’ and ‘D’ denotes ‘division’, then wha...
Six people A, B, C, D, E and F are sitting around a circular table facing the centre. C sits second to the left of B. E is an immediate neighbour of B. ...
Which two signs should be interchanged to make the following equation correct?Â
14 × 5 – 56 ÷ 7 + 35 = 43Â
28 is related to 168 following a certain logic. Following the same logic, 39 is related to 234. To which of the following is 43 related following the sa...
Which letter-cluster will replace the question mark (?) to complete the given series?
BELL, CGIH, ?, EKCZ, FMZV
Select the set in which the numbers are related in the same way as are the numbers of the following sets.
(NOTE : Operations should be performed ...
Each of the six people were watching a different movie. A finished before D. but after F. E finished before B, but after D. F finished after C, but befo...
In a certain code language,
'see their dresses' is coded as 'ti ve su',
'dresses we see' is coded as 'nx ti ve',
'we see their part...
Which figure should replace the question mark (?) if the following series were to be continued?
