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:

Dividend Income

Income received from owning shares in a company, typically paid out from the company's profits.

Dividend Per Share

The amount of dividend a company pays out to each shareholder for each share they own.

Retained Earnings

The portion of a company's profit that is held back and not paid out as dividends, used for reinvestment in the business or debt repayment.

Stock Split

A corporate action that increases the number of shares in a company by issuing more shares to current shareholders proportional to their ownership.