The HO model assumes that when an economy shifts from no trade to free trade, the shifts in productive inputs from one industry to another:
A) occur instantaneously.
B) are very costly.
C) cause at least temporary increases in unemployment.
D) require costly rebuilding of physical capital.
Correct Answer:
Verified
Q1: A shortcoming of the Heckscher-Ohlin model of
Q2: Compared to a hypothetical free trade equilibrium
Q3: Compared to a free trade equilibrium when
Q4: During the nineteenth century, transport costs:
A) fell
Q5: During the nineteenth century, price gaps:
A) shrank
Q7: The HO model assumes that when an
Q8: When an economy shifts from no trade
Q9: When an economy shifts from no trade
Q10: The model that shows how the economy
Q11: Compared to the Heckscher-Ohlin model, all other
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