According to the factor price equalization theorem, if country B is labor abundant, then if country B initiates trade with country A
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.
D
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Which of the following statements is true?
A) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in quantity demanded. B) An increase in demand causes an increase in equilibrium price; the increase in price causes supply to increase. C) If demand increases and supply decreases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) If both demand and supply decrease, there must be a decrease in equilibrium price; equilibrium quantity may either increase or decrease.
A market requires
A) sellers only. B) buyers and sellers. C) government intervention. D) buyers only.
Which of the following equals the ratio of the change in total revenues over the change in output?
A) total cost B) average revenue C) demand D) marginal revenue