According to the factor price equalization theorem a. Trade will result in a convergence of factor prices across borders b. Trade is a substitute for labor migration c. If factor prices are not equal then firms will adjust production techniques d. If factor prices are not equal then factors will migrate across borders
According to the factor price equalization theorem a. Trade will result in a convergence of factor prices across borders b. Trade is a substitute for labor migration c. If factor prices are not equal then firms will adjust production techniques d. If factor prices are not equal then factors will migrate across borders
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 13P
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Question
According to the factor
a.
Trade will result in a convergence of factor prices across borders
b.
Trade is a substitute for labor migration
c.
If factor prices are not equal then firms will adjust production techniques
d.
If factor prices are not equal then factors will migrate across borders
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