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

question 63

Multiple Choice

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

• A) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.
• 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) In the long run, labor is mobile and capital is not.
• D) Factor price equalization will occur only if there is costless mobility of all factors across borders.
• E) The wage-rental ratio is determined by relative product prices.

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