Using the HO model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor intensive,
A) Mexico will produce more soybeans once trade is introduced.
B) the United States will produce more avocados once trade is introduced.
C) avocado prices in the United States will fall once trade begins.
D) soybean prices in Mexico will rise once trade begins.
C
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Spending on an education is considered an investment because it involves a sacrifice of current income for higher expected future income.
Answer the following statement true (T) or false (F)
Altogether, total health care spending per person in the United States is
A) about $3,600. B) over $8,000. C) roughly $26,000. D) about $50,000.
All governments face a budget constraint: none can spend more than the sum of current government revenues plus the amount that creditors are willing to lend. Why, then, do government budget deficits matter?
What will be an ideal response?
According to the quantity theory of money, if the quantity of goods and services doubles within the economy while velocity is constant and the money supply is cut in half, then the price level will be
a. unaffected b. four times higher c. times higher d. one-half its previous level e. one-fourth its previous level