The following figure represents the situation before and after trade openness of a domestic country in a Heckscher-Ohlin framework. We have two goodsservices and technology. The technology industry is skilled labour intensive while the services industry is unskilled labour intensive. The variables withsubscript B are associated with the equilibrium in autarky while the variables with superscript W are associated with free tradeVaSIC,B(PPr)BWhich one of the following statements is true?O A. The home economy must be relatively skilled labour abundant and the home economy is gaining from tradeO B. The home economy must be relatively unskilled labour abundant and the home economy is gaining from tradeOC. The home economy must be relatively skilled labour abundant and the home economy is not gaining from tradeO D. The home economy must be relatively unskilled labour abundant and the home economy is not gaining from trade

Given the PPC for the home country, we can see that the production takes place where the value of…

The following figure represents the situation before and after trade openness of a domestic country in a Heckscher-Ohlin framework. We have two goods services and technology. The technology industry is skilled labour intensive while the services industry is unskilled labour intensive. The variables with subscript B are associated with the equilibrium in autarky while the variables with superscript W are associated with free trade | (PyP;)W VE SIC, (PsPr)B Which one of the following statements is true? O A. The home economy must be relatively skilled labour abundant and the home economy is gaining from trade O B. The home economy must be relatively unskilled labour abundant and the home economy is gaining from trade O C. The home economy must be relatively skilled labour abundant and the home economy is not gaining from trade O D. The home economy must be relatively unskilled labour abundant and the home economy is not gaining from trade

The following figure represents the situation before and after trade openness of a domestic country in a Heckscher-Ohlin framework. We have two goods services and technology. The technology industry is skilled labour intensive while the services industry is unskilled labour intensive. The variables with subscript B are associated with the equilibrium in autarky while the variables with superscript W are associated with free trade | (PyP;)W VE SIC, (PsPr)B Which one of the following statements is true? O A. The home economy must be relatively skilled labour abundant and the home economy is gaining from trade O B. The home economy must be relatively unskilled labour abundant and the home economy is gaining from trade O C. The home economy must be relatively skilled labour abundant and the home economy is not gaining from trade O D. The home economy must be relatively unskilled labour abundant and the home economy is not gaining from trade

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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