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

question 9

Multiple Choice

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

• A) The wage-rental ratio determines the capital-labor ratio in a country's industries.
• 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:

Starch Test

A method used in various industries to detect the presence of starch by turning an iodine solution blue-black upon contact. In another context, it assesses the effectiveness of print advertisements based on recall and recognition.

Unaided Recall Test

A market research technique that measures how well consumers can remember a brand or product without any prompts or cues.

Starch Test

A chemical method used to determine the presence of starch in various materials, typically involving an iodine solution that turns blue-black in the presence of starch.

Aided Recall Test

A marketing research technique where respondents are given specific cues or prompts to help them remember advertisements or brands.