According to the factor price equalization theorem, if country A is labor abundant, then if country A initiates international trade
A) wages and rents should fall in A.
B) rents and rents should rise in A.
C) wages should rise and rents should fall in A.
D) wages should fall and rents should rise in A.
C
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The profit-maximizing level of output for any firm in a perfectly competitive market is to produce where:
A. MC = MR. B. MC > MR. C. MC < MR. D. MR = P*.
Other factors held constant, a decrease in resource prices will shift the aggregate:
a. demand curve leftward. b. demand curve rightward. c. supply curve leftward. d. supply curve rightward.
In the market for natural gas, a particularly mild winter will lead to: a. a decrease in the demand and an increase in both equilibrium price and quantity
b. an increase in the supply and an increase in both equilibrium price and quantity. c. an increase in the supply, a decrease in equilibrium price, and an increase in equilibrium quantity. d. a decrease in the demand and a decrease in both equilibrium price and quantity.
Crowding-out
A. refers to the idea that increases in government purchases inevitably cause reductions in some form of private consumption or investment. B. only occurs at full employment levels of National Output. C. is translated into inflation during periods of slack employment. D. does not include loss of leisure on the part of workers employed as a result of government spending.