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Assume That the United States Is Scarce in Labor and Abundant

Question 83

Multiple Choice

Assume that the United States is scarce in labor and abundant in capital.According to the Heckscher-Ohlin theory,which of the following would occur for the United States once trade opens


A) the price of capital should rise and the price of labor should fall
B) the price of capital should fall the price of labor should rise
C) the price of capital and labor should fall
D) the price of capital and labor should rise

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