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In the Heckscher-Ohlin Model with Two Goods and Two Factors

Question 89

Multiple Choice

In the Heckscher-Ohlin model with two goods and two factors, an increase in one factor will cause:


A) an increase in the production of the good that uses the factor intensively.
B) a decrease in the production of the good that use the factor intensively.
C) an increase in the production of the good that does not use the factor intensively.
D) no change in the production of either good.

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