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Suppose That, in a Real-World Situation, a Labor-Abundant Country's Tariffs

Question 6

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Suppose that, in a real-world situation, a labor-abundant country's tariffs and nontariff barriers are levied relatively more heavily on labor-intensive goods than on capital-intensive goods. In this situation, a Leontief two-factor test would, other things equal, be __________ the country's adherence to the Heckscher-Ohlin trade pattern, in comparison with a situation where trade barriers were absent.


A) biased toward confirming
B) biased against confirming
C) unbiased in its finding concerning
D) biased toward confirming, biased against confirming, or unbiased in its findingConcerning - cannot be determined without more information

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