The software industry depends on highly trained workers, who are abundantly available in Country A. The heavy equipment industry depends on the availability of a large stock of physical capital with which Country B is well endowed. According to Heckscher-Ohlin theorem
A. Country B should import heavy equipment.
B. Country A should export heavy equipment.
C. Country B should import software.
D. Country A should import software.
Answer: C
Economics
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A) increase; demand; increasing B) decrease; demand; decreasing C) increase; supply; increasing D) decrease; supply; increasing
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Which of the following statements is NOT consistent with new growth theorists' beliefs?
A) Innovation can lead to lower productivity costs. B) Inventions are much more important than innovation. C) Technology must be understood in terms of what drives it. D) Rewards lead to technological advances.
Economics