The equilibrating of the price of labor and the price of capital across countries when they are engaging in free trade is called
A) the Leontief paradox.
B) the gains from trade model.
C) the complete specialization model.
D) factor-price equalization.
E) the comparative advantage model.
Correct Answer:
Verified
Q73: Production that uses a relatively high level
Q74: An implication of the Heckscher-Ohlin model is
Q75: Exhibit 29-4 Q76: Changes in comparative advantage over time from Q77: If the comparative advantage between Japan and Q79: Trade will tend to increase wages in Q80: If one country has a higher level Q81: Trade will tend to increase the cost Q82: Workers in countries with higher productivity will Q83: Suppose two countries have similar resources, capital,
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