Suppose that, with trade, the price of shoes (which are
Labor intensive) increases by 10%.Then which of the
Following can you say for sure about returns to labor and
Capital in the country?
A) Wages will rise by more than 10%.
B) Rental rates will rise by more than 10%.
C) Wages will rise by no more than 10%.
D) Rental rates will fall by at least 10%.
Correct Answer:
Verified
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(1) France and Italy
Q101: Which statement BEST describes the HeckscherOhlin
Model?
A)It only
Q102: If a country finds its comparative advantage
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Q104: What does the HO model predict will
Q106: SCENARIO: CHILE AND THE UNITED STATES
Chile and
Q107: The StolperSamuelson theorem suggests that, over time,
Free
Q108: Which of the following groups is MOST
Q109: Which of the following groups will NOT
Q110: SCENARIO: CANADA AND THE UNITED STATES
Canada and
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