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

question 49

Multiple Choice

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

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

---

Definitions:

Coupon Rate

The interest rate that an issuer of a bond or other fixed-income security agrees to pay to the bondholder annually, expressed as a percentage of the bond's face value.

Every Three Months

A quarter-yearly interval, commonly used in the context of financial payments, reporting periods, or other scheduled events.

Coupon Payments

Regular interest payments made to bondholders as compensation for the investment and loan of capital.

Semi-Annual Interest

Interest that is calculated and paid twice a year, often used in bond markets.