Multiple Choice
Which of the following is one conclusion of the Heckscher-Ohlin model?
A) In the real world, with unlimited goods, nations will buy products that satisfy their demands and sell products they have no use for.
B) If there are limited resources, such as capital and land, production varies directly with the amount of labor used.
C) Some factors of production are fixed and some are variable. We need only consider the variable factors when we analyze international trade.
D) With two goods and two factors, each country will export the good that uses intensively the factor of production it has in abundance and will import the other good.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: (Figure: A Country's Before and After Trade
Q4: What was "paradoxical" about the results of
Q5: (Figure: A Country's Before and After Trade
Q6: According to the application in the text,
Q7: In the Heckscher-Ohlin Model, as trade occurs
Q9: (Figure: Home and Foreign Autarky Equilibria) At
Q10: Which of the following statements is NOT
Q11: In a capital-intensive industry, the labor-capital ratio
Q12: Feenstra and Taylor describe the "magnification effect"
Q13: Which of the following groups will NOT