Factor Endowments Country A Country B 45 20 Labor Force 15 10 Capital Stock Refer to the table above. If good S is capital intensive, then according to the Heckscher-Ohlin theorem, O country B will export good S O country A will export good S O both countries will export good S O neither country will export good S

Principles of Economics 2e
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Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 27RQ: In the tradeoff between economic output and environmental protection, what do the combinations on...
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Factor Endowments
Country A
Country B
Labor Force
45
20
Capital Stock
15
10
Refer to the table above. If good S is capital intensive, then according to the
Heckscher-Ohlin theorem,
O country B will export good S
O country A will export good S
O both countries will export good S
O neither country will export good S
Transcribed Image Text:Factor Endowments Country A Country B Labor Force 45 20 Capital Stock 15 10 Refer to the table above. If good S is capital intensive, then according to the Heckscher-Ohlin theorem, O country B will export good S O country A will export good S O both countries will export good S O neither country will export good S
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