The HO Model Predicts That the Factor of Production Used

question 13

Multiple Choice

The HO model predicts that the factor of production used
More intensively in the production of exports will
Experience:

• A)decreased demand and a decline in its relative price.
• B)decreased demand and an increase in its relative price.
• C)increased demand and an increase in its relative price.
• D)no change in its demand because the factors of production are fixed in the short run.

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Definitions:

Word-completion Task

A psychological test in which participants are asked to fill in the blanks in a list of incomplete words.

Encoding Specificity Principle

A principle in psychology that states the recall of information is improved if cues received at the time of recall are consistent with those present at the time of encoding.

College Professor

An academic instructor or faculty member who teaches and conducts research at a college or university level.

Recognize

The ability to identify someone or something as being previously known or familiar.