According to the factor price equalization theorem, if country A ...

[jake]

According to the factor price equalization theorem, if country A is labor abundant, then if country A initiates international trade
 
  A) wages and rents should fall in A.
  B) rents and rents should rise in A.
  C) wages should rise and rents should fall in A.
  D) wages should fall and rents should rise in A.

Question 2

With the full implementation of the Single European Act, the EU became a
 
  A) common market.
  B) free trade area.
  C) customs union.
  D) economic union.
  E) None of the above.

[blfontai]

Answer to Question 1

C

Answer to Question 2

A