According to the Factor-Price-Equalization Theorem, Free Trade Between Any Two

question 46

Multiple Choice

According to the factor-price-equalization theorem, free trade between any two countries equalizes:

• A)product prices as well as the prices of individual factors of production between the countries.
• B)product prices between the countries but not the prices of individual factors of production.
• C)product prices between the countries and factor prices within each country but not between the countries.
• D)product prices and factor prices within each country but not between the countries.

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Definitions:

Perceptual Biases

Cognitive biases that result from the simplification of processing social realities, often leading to distorted interpretations.

Central Tendency

The tendency to assign most ratees to middle-range job performance categories.

Halo Effect

A cognitive bias where the perception of one positive trait influences the perception of other traits.

Consensus Cues

Signals or indications that members of a group or audience are in general agreement about a particular idea or opinion.