The Factor Price Equalization Theorem States That International Trade Will

question 9

Multiple Choice

The factor price equalization theorem states that international trade will bring about equalization in

• A) relative returns only
• B) absolute returns only
• C) both relative and absolute returns
• D) neither absolute nor relative returns

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Definitions:

Month Of August

The eighth month of the Gregorian calendar, following July and preceding September, typically associated with the summer season in the northern hemisphere.

Expected Amount

The predicted value or mean of all possible outcomes of a variable, weighted by their probabilities.

Probability Model

A mathematical representation of a random process, describing all possible outcomes and their associated probabilities.

Ace Of Hearts

A playing card in the heart suit, regarded as either the highest or lowest depending on the game.