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.

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Definitions:

Implicit Favorites

The subconscious preference for certain individuals over others, often influencing decision-making and behavior unconsciously.

Decision Structure

The organizational framework that outlines how decisions are made, who makes them, and the processes used to reach conclusions.

Nonprogrammed Decision

Decisions made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Incubation

A process or period of time in which new ideas, projects, or startups are developed in a supportive environment.