Country A is relatively land-abundant, and wheat is relatively land-intensive. Given the assumptions of the Heckscher-Ohlin model, the opening of trade by this country will cause the domestic price of wheat to
A. fall.
B. remain unaffected.
C. rise.
D. rise at first, but then fall back to its original level.
Answer: C
Economics
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A) A left shift in the supply curve for labor, without any change in the demand curve for labor B) A left shift in the demand curve for labor, without any change in the supply curve for labor C) A right shift in the supply curve for labor, without any change in the demand curve for labor D) A right shift in the demand curve for labor, without any change in the supply curve for labor
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The Fed issues bonds to raise money and uses it to finance the U.S. government's budget deficit
a. True b. False
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