Which Model States That Nations That Are Abundant in a Factor

question 191

Multiple Choice

Which model states that nations that are abundant in a factor will have a comparative advantage in a good whose production is intensive in that factor?

• A)the pauper labor fallacy model
• B)the Ricardian model
• C)the Heckscher-Ohlin model
• D)the oligopoly model

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Definitions:

High-Low Method

The high-low method is a statistical technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Cost Equation

An equation that reflects the relationship between costs, production volume, and other factors, often used for predicting costs at various levels of activity.

Two Points

In finance, two points refer to a one percent change in the face value of a financial instrument like a loan or mortgage, often related to fees or interest rates.

Variable Cost Per Unit

The cost that changes with the level of output or production, expressed on a per unit basis.