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:

Economic Class

A categorization based on the economic status of individuals or groups, often determined by income, wealth, and occupation.

Royal Woman

A female member of a royal family, often signifying someone of noble rank or birth within a monarchy.

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Light shades of color that have high lightness but low saturation.

Comparison/contrast

A method of organizing text that emphasizes similarities and differences between two or more subjects.