Factor Price Equalization means that A. the demand for the factor that is abundant in a country will be higher so that the price of this factor equals across countries B. for countries to trade freely, factors of production need to be taxed accordingly so that their prices are equal across countries C. the supply of the factor that is abundant in a country will be higher so that the price of this factor equals across countries D. free trade makes the cost of identical factors in different countries to be more similar than they were in autarky This question has more than one ( 1 ) answers

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter6: The Economics Of Political Action
Section: Chapter Questions
Problem 15CQ
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Factor Price Equalization means that

A. the demand for the factor that is abundant in a country will be higher so that the price of this factor equals across countries

B. for countries to trade freely, factors of production need to be taxed accordingly so that their prices are equal across countries

C. the supply of the factor that is abundant in a country will be higher so that the price of this factor equals across countries

D. free trade makes the cost of identical factors in different countries to be more similar than they were in autarky

This question has more than one ( 1 ) answers

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