If an Economy Experiences an Increase in Its Labor Force,everything

question 2

Multiple Choice

If an economy experiences an increase in its labor force,everything else constant,then at constant world prices,it will

• A)export more, if the country was initially labor abundant.
• B)import more, if the country was initially labor abundant.
• C)export more, if the country was initially capital abundant.
• D)Both A and B above.

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Definitions:

Commercial Paper

A written promise from one company to another to pay a specific amount of money.

Accounts Receivable

Funds that are due to a company by customers who have purchased goods or services on credit.