Which of the statement(s) below is(are) FALSE ? A. Domestic capital rental of two trading countries will equal to their domestic wage rate B. Wage rate of two trading countries will only be similar if they have the same factor endowment C. According to the Heckscher-Ohlin Model, labor flows internationally to equal factor prices D. Wage rate of two trading countries will become similar if both produce
Which of the statement(s) below is(are) FALSE ? A. Domestic capital rental of two trading countries will equal to their domestic wage rate B. Wage rate of two trading countries will only be similar if they have the same factor endowment C. According to the Heckscher-Ohlin Model, labor flows internationally to equal factor prices D. Wage rate of two trading countries will become similar if both produce
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the statement(s) below is(are) FALSE ?
A. Domestic capital rental of two trading countries will equal to their domestic wage rate
B. Wage rate of two trading countries will only be similar if they have the same factor endowment
C. According to the Heckscher-Ohlin Model, labor flows internationally to equal factor prices
D. Wage rate of two trading countries will become similar if both produce outputs that have the same factor intensity
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