Computers must be the capital-intensive sector

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TRUE or FALSE, explain why using sentences, graphs, or equations

(a) In the Heckscher-Ohlin model, if the share of country’s capital used in Computers is higher than the share of country’s labor used in Computers, then Computers must be the capital-intensive sector.

(b) Consider a specific factor model with labor as a mobile factor. Holding goods prices fixed, immigration reduces country’s welfare because it lowers wages.

Reference no: EM131004512

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