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Unformatted text preview: E. workers in the capital abundant country would migrate to the labor abundant country. Answer: C 3. International labor mobility A. leads to wage convergence by raising wages in destination country and lowering in source country. B. is in accordance with the specific factors model C. is in accordance with the Heckscher-Ohlin factor proportions model. D. leads to wage convergence by raising wages in source and lowering them in destination country. E. is in accordance with scale economy model. Answer: D 4. In a typical short-run production function, as labor increases A. the marginal product of capital decreases. B. the overall product of labor decreases. C. the average product of labor decreases. D. the marginal product of labor decreases. 82 E. None of the above. Answer: D 83...
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This note was uploaded on 02/23/2011 for the course ECON 301 taught by Professor S.chiu during the Spring '11 term at HKU.
- Spring '11