Which of the Following Is an Assertion of the Heckscher-

question 29

Multiple Choice

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

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

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Definitions:

Goiter

An abnormal enlargement of the thyroid gland, which can lead to a noticeable bulge in the neck, often caused by iodine deficiency.

Thyroid

A gland in the neck that produces hormones regulating growth and metabolism.

Abnormal Enlarged

An atypical condition characterized by the increase in size of an organ, tissue, or other body part beyond the normal range.

Posterior Pituitary

The back part of the pituitary gland that releases hormones, such as antidiuretic hormone and oxytocin, which are produced in the hypothalamus.