Which of the Following Is an Assertion of the Heckscher-

question 32

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 the labor- intensive good and decrease production of the capital- intensive good.
• B)In the long run,labor is mobile and capital is not.
• 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)Factor price equalization will occur only if there is costless mobility of all factors across borders.
• E)An increase in a country's labor supply will increase production of both the capital- intensive and the labor- intensive good.

---

Definitions:

Revenue Reported

The total income earned by a company from its normal business operations, reported in the financial statements for a specific period.