Re: UOH 2014 question discussion

Posted by E A Ibrahim on Apr 09, 2014; 6:34pm
URL: http://discussion-forum.276.s1.nabble.com/UOH-2014-question-discussion-tp7586393p7586474.html

78. Starting from autarky situation with Heckscher-Ohlin model, if Country H is relatively labour abundant then once trade begins
(a) wages and rents should rise in H
(b) wages and rents should fall in H
(c) wages should rise and rents should fall in H
(d) wages should fall and rents should rise in H

26. Find the price elasticity of demand for the curvilinear demand function of the form Q= aP^-b
(a) -b
(b) b
(c) 1
(d) None of the above (NOTA)

22. The cost that a firm incurs in purchasing or hiring any factor of production is referred to as
(a) Explicit cost
(b) Implicit cost
(c) Variable Cost
(d) Fixed cost

10. Cigarette smoking is an example of
(a) Positive production externality
(b) Negative production externality
(c) Positive consumption externality
(d) Negative consumption externality

7. For a natural monopoly, economies of scale
(a) Exist due to patent protection
(b) cause legal barriers to entry
(c) Exist in the long-run average cost curve over the entire range of output
(d) NOTA