Kizspy | Question: 16
(Choose 1 answer)
(16017) If Australia has relatively more land per worker, and Belgium has relatively more capital per worker, then if trade began between these two countries
A. the relative price of the capital-intensive product would increase in Australia.
B. the relative price of the land-intensive product would increase in Belgium.
C. the relative price of the capital-intensive product would decrease in Belgium.
D. the relative price of the capital-intensive product would decrease in Belgium.
E. relative product prices would diverge between Australia and Belgium.
