When One Applies the Heckscher-Ohlin Model of Trade to the Issue

question 1

Multiple Choice

When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions,one must conclude that North South trade,such as U.S.-Mexico trade,

• A) must help low skill workers on both sides of the border.
• B) is likely to hurt high-skilled workers in the U.S.
• C) is likely to involve higher overall national economic gains that will be greater than any harm done to low-skilled workers in the U.S.
• D) is likely to hurt low-skilled workers in Mexico.
• E) gives no advantage to the workers in either country.

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Definitions:

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it defines the cutoff between significant and non-significant results.

F-ratio

A statistic calculated in an ANOVA test representing the ratio of variance between the groups to the variance within the groups.

Predicted Exam Scores

Estimates or forecasts of the scores individuals are expected to achieve on an exam based on a model or prior performance.

Y-intercept

The point where a line or curve crosses the y-axis of a graph.