Which of the Following Is an Assertion of the Heckscher-Ohlin

question 63

Multiple Choice

Which of the following is an assertion of the Heckscher-Ohlin model?

• A) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.
• B) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.
• C) In the long run, labor is mobile and capital is not.
• D) Factor price equalization will occur only if there is costless mobility of all factors across borders.
• E) The wage-rental ratio is determined by relative product prices.

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Definitions:

Time Savings

The reduction in the amount of time needed to complete a task or activity, often resulting from efficiency improvements or technological advancements.

Activity Duration

The length of time required to complete a specific activity or task.

Crash Duration

The shortest possible time for which an activity or project phase can be scheduled after allocating the maximum amount of resources.

Total Cost

The complete cost of producing or acquiring goods or services, including variable costs, fixed costs, and any other relevant expenses.