Which of the Following States That the Difference in Relative

question 52

Multiple Choice

Which of the following states that the difference in relative factor abundance and relative factor prices is the cause of the pretrade difference in relative commodity prices between two nations?

• A)Stolper-Samuelson theorem
• B)Differentiated product theorem
• C)Heckscher-Ohlin theorem
• D)None of the above

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Definitions:

Equilibrium Constant

A number that expresses the ratio of products to reactants at equilibrium for a chemical reaction, indicating the extent of the reaction.

Ammonia

A colorless gas with a characteristic pungent smell, consisting of nitrogen and hydrogen (NH3), used as a fertilizer and cleaning agent.

Catalyst

A material that accelerates the speed of a chemical reaction without experiencing any lasting chemical alteration.

Acid Equilibrium

The state of balance between the forward and reverse reactions in which an acid donates a proton to a base.