Solved

According to the Factor Price Equalization Theorem,a Nation That Has

Question 13

Multiple Choice

According to the factor price equalization theorem,a nation that has a relative capital abundance should specialize in goods that are ______ intensive resulting in an increase in the price of ______.


A) capital; capital
B) capital; labor
C) labor; capital
D) labor; labor

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: A difference in relative commodity prices between

Q6: When w/r falls,L/K<br>A)falls in the production of

Q8: We say that commodity Y is K-intensive

Q9: The factor price equalization theorem states that

Q11: Consumers demand more of commodity X (the

Q12: List at least four of the assumptions

Q14: Define and explain factor intensity reversal

Q15: a)Identify the conditions that may give rise

Q17: Over the last five decades,relative to the

Q18: International trade will _ the price of