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.

---

Definitions:

Clearance

The space or distance between two objects or parts, designed to allow for freedom of movement, assembly, or avoid interference.

Diametral Pitch

A measure of the fineness of gear teeth calculated as the number of teeth per unit length along the pitch diameter, used in gear design.

DP

An abbreviation that can refer to different concepts depending on the context, such as "Dual Purpose", "Dew Point", or "Distribution Point" in various fields.

Shaft Speed

The rotational speed of a shaft, measured in revolutions per minute (RPM), indicating how fast the shaft is spinning.