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Which of the Following Situations Would Violate the Assumptions of the H-O

Question 1

Multiple Choice

Which of the following situations would violate the assumptions of the H-O model?


A) Doubling all inputs doubled the production of all outputs.
B) Nation 1 has technology that is different from Nation 2.
C) Nation 1's trade is balanced.
D) Nation 2 does not completely specialize in either good.

Correct Answer:

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