Starting from an Autarky (No-Trade) Situation with Heckscher-Ohlin Model, If

question 57

Multiple Choice

Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins

• A) wages should fall and rents should rise in H.
• B) wages and rents should fall in H.
• C) wages should rise and rents should fall in H.
• D) rent will be unchanged but wages will rise in H.
• E) wages and rents should rise in H.

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Definitions:

Behavioral Reactions

Responses or actions taken by individuals or groups in response to environmental, social, or internal stimuli.

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Nielsen Television Index Ranking

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