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If Growth in National Income Is Due Entirely to Growth

Question 24

Multiple Choice

If growth in national income is due entirely to growth in the labor force, under the Heckscher-Ohlin assumptions,


A) there will be a decline in per capita income.
B) there will be an increase in per capita income.
C) it is impossible to determine the direction of impact on per capita income without More information.
D) there will be an increase in trade and welfare.

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