True, False, or Uncertain. Please declare whether each of the following statements is True, False, or Uncertain.
Question:
True, False, or Uncertain. Please declare whether each of the following statements is True, False, or Uncertain. Provide a short justification for your answer.
1. The large flows into and out of unemployment in the US suggest that the labor market is inefficient. Policies to limit this "churning" would raise the growth rate of potential output.
2. In order to benefit from the introduction of new ideas, the citizens of a country need to capture some of the monopoly profits that flow to the people who control the ideas.
3 Small countries stand to gain more from free trade than big countries.
4. When free trade opens between a capital abundant country and a labor abundant country, wages in the capital abundant country will fall.
5. When free trade opens between a capital abundant country and a labor abundant country, we would expect to see an increase in asset prices in the labor abundant country.
6. Because wages are lower in developing countries, they have lower production costs than developed countries.