The ratio of the percentage change in consumption of a good ...

[HudsonKB16]

The ratio of the percentage change in consumption of a good divided by the percentage change in income (as measured by GDP) is known as the
 
  A) income elasticity of demand.
  B) income expansion path.
  C) demand elasticity equivalent.
  D) trade effectiveness.

Question 2

The HO model rules out the classical model's basis for trade by assuming that ________ is (are) identical between countries.
 
  A) factor endowments
  B) factor intensities
  C) technology
  D) opportunity costs

[nital]

Answer to Question 1

A

Answer to Question 2

C