Question
1a. Bonus.Assume the Heckscher-Ohlin model where autos are capital-intensive and cloth is labor-intensive.An increase in the relative price of autos of 10% will A.increase the
1a. Bonus.Assume the Heckscher-Ohlin model where autos are capital-intensive and cloth is labor-intensive.An increase in the relative price of autos of 10% will
A.increase the income of capital owners by 10%
B.increase the income of capital owners, but by less than 10%
C.increase the inocme of capital owners by more than 10%
D.have no effect on the income of capital owners
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
