In the Heckscher­Ohlin Model with Two Goods and Two

question 121

Multiple Choice

In the Heckscher­Ohlin model with two goods and two
Factors, an increase in one factor will cause:

• A)an increase in the production of the good that uses the factor intensively.
• B)a decrease in the production of the good that use the factor intensively.
• C)an increase in the production of the good that does not use the factor intensively.
• D)no change in the production of both goods.

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Definitions:

Balance Sheet

Financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Balance Sheet

is a financial statement that presents a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.

Expense

Costs incurred by a business in the process of earning revenue, such as salaries, rent, and utilities.

Capital Account

An account on a nation's balance of payments that records the investment funds coming in and going out of the country.