The Equilibrating of the Price of Labor and the Price

question 2

Multiple Choice

The equilibrating of the price of labor and the price of capital across countries when they are engaging in free trade is called

• A)the Leontief paradox.
• B)the gains from trade model.
• C)the complete specialization model.
• D)factor-price equalization.
• E)the comparative advantage model.

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Definitions:

Value Orientation

involves the principles and beliefs that individuals consider important, guiding their behavior and decisions.

Traditional Values

Beliefs and moral codes that are passed down from generation to generation within a culture or society.

Minimum Sufficiency

The lowest level of effort or input required to achieve a desired outcome or effect.