One Way in Which the Heckscher-Ohlin Model Differs from the Ricardo

question 45

Multiple Choice

One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ________ is (are) identical in all countries.

• A) factor endowments
• B) scale of production
• C) factor intensities
• D) technology
• E) opportunity costs

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Definitions:

Budget

An estimate of income and expenditure for a set period of time, often used for planning and managing finances.

Operating Budget

An estimation of the revenue and expenses over a specified future period of time, operationalizing a company's financial plan.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.

U.S. Dollar

The official currency of the United States, widely used as a standard of value and medium of exchange in international trade.