If labor is scarce in Sri Lanka but capital is abundant, when Sri Lanka opens to trade:
A.the prices of labor and capital will rise.
B.the prices of labor and capital will fall.
C.the price of labor will rise, and the price of capital will fall.
D.the price of labor will fall, and the price of capital will rise.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q146: If Japan levies tariffs on U.S.goods entering
Q152: Compared with autarky, international trade leads to
Q153: Figure: A Tariff on Oranges in South
Q154: When a domestic market begins to export
Q155: In a single year, Argentina can raise
Q156: If labor is abundant in South Africa
Q158: When a domestic country exports goods to
Q160: In a single year, Argentina can raise
Q161: (Figure: A Tariff on Oranges in South
Q169: If Canada imposes a tariff of $5
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