In the 2-Factor, 2-Good Heckscher-Ohlin Model, an Influx of Workers

question 56

Multiple Choice

In the 2-factor, 2-good Heckscher-Ohlin model, an influx of workers from across the border would

• A) move the point of production along the production possibility curve.
• B) shift the production possibility curve outward, and increase the production of both goods.
• C) shift the production possibility curve outward and decrease the production of the labor-intensive product.
• D) shift the production possibility curve outward and decrease the production of the capital-intensive product.
• E) shift the possibility curve outward and displace preexisting labor.

---

Definitions:

Capacity Allocation

The process of distributing available resources or production capabilities among various tasks, projects, or departments to optimize efficiency.

Facility Role

The specific function or purpose that a facility serves within the operations of a business, such as manufacturing, storage, or administration.

Split the Market

A strategy where a market is divided into segments to target specific groups of consumers.

Price Advantage

The benefit or competitive edge that comes from offering lower prices than competitors.