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:

British Sympathy

Refers to the empathy or support from British individuals or the government towards a specific cause, nation, or situation.

Northwest Territory

A historical region in the United States that encompassed land west of Pennsylvania, north of the Ohio River, and east of the Mississippi River, designated for future expansion.

Sovereign Nation

A politically independent state or country recognized by other nations, having full control over its own territory and government without external influence.

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The rulers of the Barbary States in North Africa, known in the early modern period for their engagement in piracy and slave trade, impacting European and American shipping.