In the 2-Factor, 2-Good Heckscher-Ohlin Model, the Country with a Relative

question 17

Multiple Choice

In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of ________ will have a production possibility frontier that is biased toward production of the ________ good.

• A) labor; labor intensive
• B) labor; capital intensive
• C) land; labor intensive
• D) land; capital intensive
• E) capital; land intensive

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Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as labor and materials.

Annual Fixed Cost

Fixed costs that a business incurs over a year regardless of its activity level, such as rent, salaries, or insurance.

Technology Use

The application of scientific knowledge for practical purposes, especially in industry and daily life.

Time Efficiency

Refers to the effective use of time to maximize productivity or achieve a task within the shortest possible duration.