In the 2-Factor, 2-Good Heckscher-Ohlin Model, an Influx of Workers

question 56

Multiple Choice

In the 2-factor, 2-good Heckscher-Ohlin model, an influx of workers from across the border would

• A) move the point of production along the production possibility curve.
• B) shift the production possibility curve outward, and increase the production of both goods.
• C) shift the production possibility curve outward and decrease the production of the labor-intensive product.
• D) shift the production possibility curve outward and decrease the production of the capital-intensive product.
• E) shift the possibility curve outward and displace preexisting labor.

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Definitions:

Chapter 7

A section of the U.S. Bankruptcy Code that provides for the liquidation of a debtor's assets to pay off creditors.

Good Faith

An honest intent to act without taking an unfair advantage over another person in a transaction.

Chapter 13

A form of U.S. bankruptcy allowing individuals earning regular income to develop a plan to repay all or part of their debts over time.

Debtor

A party that has a financial obligation or debt to another party, referred to as the creditor, within a commercial transaction.