Suppose That There Are Two Factors, Capital and Land, and That

Multiple Choice

Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model

A) European landowners should support U.S.-European free trade.
B) the U.S. should compensate European countries once trade commences.
C) European capitalists should support U.S.-European free trade.
D) all landowners should support free trade.
E) all capitalists in both countries should support free trade.