Which One of the Following Is NOT an Assumption Made

question 14

Multiple Choice

Which one of the following is NOT an assumption made in the standard 2x2x2 Heckscher-Ohlin analysis?

• A) The production function for a given good is the same in both countries.
• B) If a particular good is the relatively labor-intensive good at one set of relative factor Prices, then it is also the relatively labor-intensive good at any other set of relative Factor prices.
• C) A given relative commodity price ratio, say (P_X/P_Y)₁, can be associated with more than One relative factor price ratio, e.g., say with (w/r)₁ as well as with (w/r)₂.
• D) Tastes and preferences (i.e., the community indifference curve maps) are identical in the two countries.

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Definitions:

Authoritarianism

A governing or leadership style characterized by absolute or blind obedience to authority, as opposed to individual freedom and related to centralization of power.

Machiavellianism

A personality trait that involves manipulation and exploitation of others, a lack of morality, and a focus on self-interest and deception.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding conflicting beliefs, ideas, or values.

Opportunities for Promotion

refer to the prospects or avenues available within an organization for employees to advance to higher positions.