In the Heckscher-Ohlin model, when there is international-trade equilibrium
A) the relative price of the capital intensive good in the capital rich country will be the same as that in the capital poor country.
B) the capital rich country will charge less for the capital intensive good than the price paid by the capital poor country for the capital-intensive good.
C) the capital rich country will charge more for the capital intensive good than the price paid by the capital poor country for the capital-intensive good.
D) workers in the capital rich country will earn more than those in the poor country.
E) the workers in the capital rich country will earn less than those in the poor country.
A
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A bank's reserve ratio is 5 percent and the bank has $1,000 in deposits. It's reserves amount to
a) $5. b) $50. c) $95. d) $950.
Attempts by a central bank to increase bank deposits without a decrease in nominal short-term interest rates are referred to as ________
A) quantitative easing B) credit channeling C) open market operations D) liquidity provision