Which of the Following Is an Assertion of the Heckscher-

question 37

Multiple Choice

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

• A)The wage- rental ratio determines the capital- labor ratio in a country's industries.
• B)In the long run,labor is mobile and capital is not.
• C)Factor price equalization will occur only if there is costless mobility of all factors across borders.
• D)Factor endowments determine the technology that is available to a country,which determines the good in which the country will have a comparative advantage.
• 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:

Active System

A mechanism or process that requires energy to operate and actively manages or controls conditions.

Organizes

The act of arranging or structuring elements in a systematic way for efficiency and functionality.

Retrieves

The process of getting back information or objects that were stored or kept away.

Alters

Alternate identities or personalities within an individual, often associated with dissociative identity disorder (DID), where a person's identity is fragmented into two or more distinct states.