In the heckscher ohlin model suppose that the

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7) In the Heckscher-Ohlin model, suppose that the computer industry is intensive in capital and that the price of computers increases (other prices do not change). We can conclude that: a. Welfare for both capital owners and workers increases but the welfare of capital owners increases even more b. Welfare for both capital owners and workers increases but the welfare of workers increases even more c. Welfare increases for capital owners and decreases for workers. d. Welfare increases for workers and decreases for capital owners. K K M M T T R R P P W W R R b 0 )
These next three questions are worth 4 points each: 8) In the Ricardian model with free trade, the fact that the Home country specializes in sector A and does not produce in sector B implies for the Home country wages: B B B B
4 9) In the Heckscher-Ohlin model, suppose that the Foreign country is relatively abundant in labor (compared to the Home country) and suppose that the Foreign economy becomes larger:
10) Suppose that Russia imports automobiles, which is a capital-intensive good. We can conclude that:
5 Part 2: Questions Provide detailed and clear answers. If you don’t have enough space to answer, please use the other side.

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