Multiple Choice
Why is the PPF bowed out in the Heckscher-Ohlin model?
A) Capital is specific to the production of one good.
B) Labor is specific to the production of the other good.
C) There are increasing opportunity costs of producing more of each good.
D) Labor is not perfectly mobile between the production of the two goods.
Correct Answer:
Verified
Correct Answer:
Verified
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