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:

Constraints

Limitations or restrictions that affect the planning, execution, and outcome of projects or processes.

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A service that allows individuals to rent scooters for short-term use, typically facilitated through a mobile app.

Chopper Rental

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Price/Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively defined as the percentage change in quantity demanded divided by the percentage change in price.