Starting from an Autarky (No-Trade) Situation with Heckscher-Ohlin Model, If

question 57

Multiple Choice

Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins

• A) wages should fall and rents should rise in H.
• B) wages and rents should fall in H.
• C) wages should rise and rents should fall in H.
• D) rent will be unchanged but wages will rise in H.
• E) wages and rents should rise in H.

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Definitions:

Department of Justice

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

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The economic and social expenses associated with maintaining prison systems and the long-term impact on incarcerated individuals and society.

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War on Drugs

A campaign led by governments aimed at reducing the illegal drug trade.