One Way in Which the Heckscher-Ohlin Model Differs from the Ricardo

question 45

Multiple Choice

One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ________ is (are) identical in all countries.

• A) factor endowments
• B) scale of production
• C) factor intensities
• D) technology
• E) opportunity costs

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Definitions:

Fiat Currencies

Money that a government has declared to be legal tender, despite it not being backed by a physical commodity, with its value stemming from the trust and acceptance of the people.

Cryptocurrencies

Digital or virtual currencies using cryptography for secure financial transactions, operating independently of a central bank.

Physical Commodity

Tangible goods that are traded, bought, or sold, such as oil, grain, or metals.

Government Backing

The support or endorsement provided by a government to an entity, which can include financial guarantees, subsidies, or policies beneficial to the entity.