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If There Is Diminishing Marginal Productivity of Labor in Production

Question 30

Multiple Choice

If there is diminishing marginal productivity of labor in production (with other inputs held constant) , an outmigration of labor from low-wage country A to higher-wage country B will lead, other things equal and if trade is taking place in accordance with the Heckscher-Ohlin analysis, to __________ production effect in the capital-abundant country.


A) an ultra-antitrade
B) an antitrade
C) a neutral
D) an ultra-protrade

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