Which of the following is not an assumption of the factor-proportions theory?
A) perfect competition in the product and factor markets
B) homogeneous labor and capital in both countries
C) different tastes and preferences between countries
D) constant returns to scale
E) constant returns to scale.
Correct Answer:
Verified
Q1: Constant returns to scale implies:
A) as the
Q2: Which of the following is not an
Q4: When we say that steel is capital
Q5: When we say that wheat is labor
Q6: A country is said to be relatively
Q7: Which of the following statements is false?
A)
Q8: The factor-proportions theory of international trade predicts:
A)
Q9: The factor-proportions theory identifies the source of
Q10: According to the factor-proportions theory, the source
Q11: In the factor-proportions theory, international trade is
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