Multiple Choice
According to factor price equalization, if Country B is labor abundant as international trade occurs then:
A) labor should be opposed to international trade.
B) the owners of capital should be opposed to international trade.
C) both labor and the owners of capital should be opposed to international trade.
D) both labor and the owners of capital should be in favor of international trade.
E) None of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q44: Discuss how international trade tends to change
Q45: Suppose that Bolivia is labor abundant, and
Q46: The factor-proportions theory of international trade states
Q47: The factor-proportions theory predicts that the pattern
Q48: If a country is abundant in labor
Q50: International trade tends to:<br>A) have no effect
Q51: A country that is labor abundant relative
Q52: No member of society ever loses because
Q53: The factor-proportions theory states that a country
Q54: In the specific-factors model:<br>A) owners of the