The Heckscher­Ohlin Model Assumes That Production

question 52

Multiple Choice

The Heckscher­Ohlin model assumes that production
Techniques within a nation use the factors of production:

• A)at different intensities depending on changing technology and which nation you are discussing.
• B)at different intensities for each industry, so that one is more or less intensive in that factor than the other.
• C)at the same intensity for each industry-for example, the ratio of capital to labor is the same for every industry in
• The nation.
• D)in no definite pattern.

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Definitions:

Price

The amount of money required to purchase a good or service, reflecting its value in economic transactions.

Quantity

Refers to the amount or number of units or items available, produced, or consumed in a given context.

Competition

The rivalry among businesses to attract customers, increase sales, and achieve market dominance.

Self-Interested

Describes individuals or entities that act in their own best interest, aiming to maximize their own benefits and minimize costs.