In the 2- Factor,2- Good Heckscher- Ohlin Model,the Production Possibility

question 33

Multiple Choice

In the 2- factor,2- good Heckscher- Ohlin model,the production possibility frontier is kinked when

• A)there is no factor substitution in production.
• B)transportation costs are very high.
• C)the opportunity cost of production is constant.
• D)there are unemployed factor resources.
• E)a country does not engage in trade.

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Definitions:

Poorest 20 Percent

The segment of a population that ranks at the bottom fifth in terms of income.

Income Mobility

The ability of individuals or families to move up or down the economic ladder within a society over time.

Economic Status

An individual's or area's financial condition and stability, often measured by income, employment, and wealth indicators.

Annual Income

The total amount of money earned by an individual or business in one year from all sources.