Question: Use the following table to answer Question 16. Factor Endowments Labor Force Countries A B 75 25 100 50 Capital Stock 16. 17. 18.

Use the following table to answer Question 16. Factor Endowments Labor Force

Use the following table to answer Question 16. Factor Endowments Labor Force Countries A B 75 25 100 50 Capital Stock 16. 17. 18. If good T is capital intensive, then following the Heckscher-Ohlin Theory A. country B will export good T. B. country A will export good T. C. both countries will export good T. D. both countries will import good T E. trade will not occur between these two countries. Under the model of monopolistic competition, a(an) industry will cause to A. increase; average cost; decrease B. increase; average price; increase C. increase; average price; decrease D. decrease; markup; decrease E. increase; marginal cost; decrease A small nation's export subsidy export subsidy A. improves; worsens B. worsens; improves in the number of firms in the importing countries' terms of trade; a large nation's importing countries' terms of trade. C. improves; improves D. improves; does not affect E. does not affect; improves

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