1.

What are the assumptions in the Samuelson's factor price equalisations theorem of International Trade ? (a) There are only two countries say A (America) and B (Britan)(b) They produce and trade two commodities say, food and clothing.(c) There are three factors of production land, labour and capital to produce thesecommodities.(d) The production function of each commodity is heterogen of degree one.Which of the statement given above is/are correct ?

A. (a) only
B. (a) and (b)
C. (a), (b) and ©
D. (a), (b) and (d)
Answer» C. (a), (b) and ©


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