International trade tends to:
A) have no effect on factor prices.
B) cause all factor prices to fall.
C) cause the price of the scarce factor to rise and the price of the abundant factor to fall.
D) cause the price of the scarce factor to fall and the price of the abundant factor to rise.
E) not influence factor prices.
Correct Answer:
Verified
Q31: Suppose that Bolivia is labor abundant, and
Q32: The effect of international trade on the
Q33: Assume that there are two factors, capital
Q34: In the factor-proportions theory, international trade tends
Q35: If a capital-abundant country freely trades with
Q37: Which theory explains how international trade affects
Q38: Factor-price equalization means that:
A) trade will have
Q39: Industrial structure refers to:
A) the percentage of
Q40: Changes in industrial structure:
A) cause changes in
Q41: Suppose that Ecuador is a labor-abundant country
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