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Assume That Home Is Relatively Abundant in Labor and Relatively

Question 121

Multiple Choice

Assume that Home is relatively abundant in labor and relatively scarce in land. The Heckscher-Ohlin model predicts that trade with other countries will cause increased returns to:


A) Home's laborers.
B) Home's landowners.
C) neither Home's laborers nor landowners.
D) both Home's laborers and landowners.

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