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Chako Chako
wrote...
Posts: 2948
8 years ago
If Australia has relatively more land per worker, and Belgium has relatively more capital per worker, then if trade began between these two countries
A) the relative price of the capital-intensive product would decrease in Belgium.
B) relative product prices would diverge between Australia and Belgium.
C) the relative price of the land-intensive product would increase in Belgium.
D) the relative price of the capital-intensive product would increase in Australia.
E) the relative price of the land-intensive product would increase in Australia.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 64 times
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Replies
wrote...
8 years ago
E
Chako Author
wrote...
8 years ago
Correct!
wrote...
8 years ago
Thanks for the feedback, I'm sure others will appreciate it too
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