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Quiz 5 (Due March 3, 11:59pm) X Est. Length: 0:30:00 Jinfeng Dong: Attempt 1 Page 1: Question 1 (1 point) 1 2 3 In an HO model, suppose that two goods are produced: phones and watches. Phones are capital intensive while watches are labour intensive. Suppose that Thailand is labour-abundant while Canada is capital-abundant. Which of the following should 4 5 occur when the two countries open to trade with each other? More than one choice is correct OL/K increases in both sectors in Canada the relative price of phones should increase for Canada w/r decreases in Canada Question 2 (1 point) In an HO model, suppose that two goods are produced: phones and watches. Phones are capital intensive while watches are labour intensive. Which of the following should occur if Canada suddenly increases its endowment of labour? Assume that prices remain constant. production of phones decreases while production of watches increases More than one choice is correct OL/K increases in both sectors w/r decreases