The United States can be characterized as relatively capital abundant and labor scarce.Thus,according to the H-O model,
A) social welfare in the United States will be reduced by trade.
B) wages in the United States will be reduced by trade.
C) the return on capital in the United States will be reduced by trade.
D) capital-labor ratios in will be changed by trade.
Correct Answer:
Verified
Q3: When w/r falls,L/K
A)falls in the production of
Q7: From empirical studies,we conclude that the H-O
Q11: A nation is said to have a
Q16: The factor price equalization theorem states that
Q17: One potential reasonable explanation for the Leontief
Q22: a)Identify the conditions that may give rise
Q23: The H-O model assumes a world in
Q24: Consumers demand more of commodity X (the
Q25: If the assumptions of the H-O hold,a
Q26: Define and explain factor intensity reversal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents