Which of the Following Is an Assertion of the Heckscher-Ohlin

question 30

Multiple Choice

Which of the following is an assertion of the Heckscher-Ohlin model?

• A) The wage-rental ratio is determined by relative product prices.
• B) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.
• C) In the long-run, labor is mobile and capital is not.
• D) Factor price equalization will occur only if there is costless mobility of all factors across borders.
• E) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.

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Definitions:

Spleen

The spleen is an organ located under the ribcage and above the stomach in the left upper quadrant of the abdomen, involved in filtering blood, storing white blood cells, and destroying old red blood cells.

Brachiocephalic Vein

A large vein in the upper chest that forms from the union of the internal jugular and subclavian veins and carries blood to the heart.

Internal Jugular

A major vein located in the neck, it collects blood from the brain, the superficial parts of the face, and the neck, and conveys it toward the heart.

Subclavian Veins

Large veins on either side of the body that receive blood from the arm and chest wall, transporting it back to the heart.