If, at Constant Relative Prices in a Two-Commodity and Two-Factor

question 27

Multiple Choice

If, at constant relative prices in a two-commodity and two-factor world, growth in a country's labor force causes an expansion in output of the labor-intensive good and a contraction in output of the capital-intensive good, this situation is an example of the

• A) Stolper-Samuelson theorem.
• B) Rybczynski theorem.
• C) Heckscher-Ohlin theorem.
• D) Leontief paradox.

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