Multiple Choice
Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins
A) wages should fall and rents should rise in H.
B) wages and rents should fall in H.
C) wages should rise and rents should fall in H.
D) rent will be unchanged but wages will rise in H.
E) wages and rents should rise in H.
Correct Answer:
Verified
Correct Answer:
Verified
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