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

question 30

Multiple Choice

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

• A) In the long run, labor is mobile and capital is not.
• B) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.
• C) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.
• D) Factor price equalization will occur only if there is costless mobility of all factors across borders.
• E) An increase in a country's labor supply will increase production of the labor-intensive good and decrease production of the capital-intensive good.

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Definitions:

Premises

Statements or propositions from which conclusions are drawn in logical arguments.

Conclusion

The end or finish of an event, process, or text.

Categorical Syllogism

An argument based on deduction that consists of two premises and three distinct terms, with each term appearing exactly two times across the three propositions.

First Premise

The initial statement or proposition from which further reasoning is based in an argument.