Under Certain Circumstances, Economic Growth That Increases an Economy's Capacity

Multiple Choice

Under certain circumstances, economic growth that increases an economy's capacity to export can trigger a worsening terms of trade that completely eliminates the welfare gains from the increased output and trade. This is called:

A) the Porter-Linder hypothesis.
B) the combinatoric growth hypothesis.
C) the Heckscher-Ohlin hypothesis.
D) the immizerizing growth hypothesis.