Multiple Choice
The Heckscher-Ohlin model predicts that the factor of production used more intensively in the production of exports will experience:
A) decreased demand and a decline in its relative price.
B) decreased demand and an increase in its relative price.
C) increased demand and an increase in its relative price.
D) no change in its demand because the factors of production are fixed in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
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