Solved

Suppose That Home Is a Capital­abundant Country.When

Question 24

Multiple Choice

Suppose that Home is a capital­abundant country.When
Home trades with Foreign, a labor­abundant country, the
HO model predicts that the price of:


A) the labor­intensive good will rise in Home.
B) the labor­intensive good will rise in Foreign.
C) the capital­intensive good will rise in Foreign.
D) the capital­intensive good will fall in Home.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q19: Which of the following statements is CORRECT?
A)The

Q20: Suppose that country 1 is capital abundant

Q21: Suppose that the United States and China

Q22: According to the text, identical technologies are

Q23: (Table:</p></div><svg width=

Q25: Why is the PPF bowed out in

Q26: (Figure: Home and</p></div><svg width=

Q27: The international equilibrium price (or world price)

Q28: Consider two products, automobiles and shoes.If shoes

Q29: (Figure: Home and</p></div><svg width=

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents