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In the 2-Factor, 2-Good Heckscher-Ohlin Model, the Country with a Relative

Question 17

Multiple Choice

In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of ________ will have a production possibility frontier that is biased toward production of the ________ good.


A) labor; labor intensive
B) labor; capital intensive
C) land; labor intensive
D) land; capital intensive
E) capital; land intensive

Correct Answer:

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