Assume a Two-Country, Two-Good, and Two Inputs Model

question 12

Multiple Choice

Assume a two-country, two-good, and two inputs model. Let the two countries in this model be the United States and the Rest of the World and the two goods being produced by each of the countries be steel and wheat. The two factors of production used in producing the goods in each country are capital and land. If the United States is capital-abundant and steel production is capital-intensive, the Heckscher-Ohlin model would predict that the Rest of the World would:

• A)export steel and import wheat.
• B)export wheat and import steel.
• C)import both the goods from the United States.
• D)export both the goods to the United States.

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Definitions:

Synovial Membrane

The lining of a synovial joint that secretes synovial fluid, allowing for smooth movement of the joint.

Symphysis Joints

A type of cartilaginous joint where bones are joined by fibrocartilage, allowing for slight movement.

Fibrocartilage

A tough, very dense type of cartilage that contains fibrous bundles of collagen, such as that found in the intervertebral discs and at the insertions of some tendons and ligaments.

Hyaline Cartilage

A type of connective tissue found in areas such as the nose, trachea, and at the ends of long bones, providing support with some flexibility.