Multiple Choice
In the Heckscher-Ohlin model, when there is international-trade equilibrium
A) the capital-rich country will charge more for the capital-intensive good than the price paid by the capital-poor country for the capital-intensive good.
B) workers in the capital-rich country will earn more than those in the poor country.
C) the workers in the capital-rich country will earn less than those in the poor country.
D) the relative price of the capital-intensive good in the capital-rich country will be the same as that in the capital-poor country.
E) the capital-rich country will charge less for the capital-intensive good than the price paid by the capital-poor country for the capital-intensive good.
Correct Answer:
Verified
Correct Answer:
Verified
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