Multiple Choice
Which of the following is an assertion of the Heckscher-Ohlin model?
A) In the long run, labor is mobile and capital is not.
B) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.
C) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.
D) Factor price equalization will occur only if there is costless mobility of all factors across borders.
E) An increase in a country's labor supply will increase production of the labor-intensive good and decrease production of the capital-intensive good.
Correct Answer:

Verified
Correct Answer:
Verified
Q25: Assume that only two countries, A and
Q26: If Gambinia has many workers but very
Q27: The Case of the Missing Trade refers
Q28: Why is it that North-South trade in
Q29: If a good is labor intensive it
Q31: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4546/.jpg" alt=" -Refer to above
Q32: The Heckscher-Ohlin model predicts all of the
Q33: International trade has strong effects on income
Q34: In the Heckscher-Ohlin model, when two countries
Q35: If a country produces good Y (measured