According to the Factor Price Equalization Theorem,a Nation That Has

question 13

Multiple Choice

According to the factor price equalization theorem,a nation that has a relative capital abundance should specialize in goods that are ______ intensive resulting in an increase in the price of ______.

• A) capital; capital
• B) capital; labor
• C) labor; capital
• D) labor; labor

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Definitions:

Hydrolysis

A chemical reaction involving the breakdown of a compound by water, leading to the separation of molecules.

Requires Water

Pertains to processes, organisms, or reactions that need water to function or occur.

Hydrolysis

A chemical process that splits molecules by adding water, commonly involved in breaking down polymers into monomers.

Monomers

Small, single molecules that can join with other similar molecules to form polymers through chemical reactions.