Suppose That There Are Two Factors,capital and Land,and That the United

question 22

Multiple Choice

Suppose that there are two factors,capital and land,and that the United States is relatively land endowed while the European Union is relatively capital-endowed.According to the Heckscher-Ohlin model

• A) European capitalists should support U.S.-European free trade.
• B) European landowners should support U.S.-European free trade.
• C) all capitalists in both countries should support free trade.
• D) all landowners should support free trade.
• E) the U.S. should compensate European countries once trade commences.

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Definitions:

Birth Control

Methods or devices used to prevent pregnancy as part of family planning.

Eminent Domain

The authority of a state or its representatives to seize private land for communal purposes, provided there is fair remuneration.

Private Property

Ownership of property (land, buildings, goods, etc.) by individuals or corporations legally recognized.

Public Use

The use of property or resources for the benefit or welfare of the general public or community.