When One Applies the Heckscher-Ohlin Model of Trade to the Issue

question 11

Multiple Choice

When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions, one must conclude that North-South trade, such as U.S.-Mexico trade

• A) must help low-skilled workers on both sides of the border.
• B) is likely to hurt high-skilled workers in the U.S.
• C) is likely to hurt low-skilled workers in the U.S.
• D) is likely to hurt low-skilled workers in Mexico.
• E) is likely to help highly skilled workers in Mexico.

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Definitions:

Statistically Significant

A measure used to determine if the results of a study are unlikely to have occurred by random chance alone, often through a p-value.

Confidence Interval

A collection of values, drawn from sample data, that is presumed to capture the value of a not yet known population characteristic.

National Average

The average of a specific set of measurements or data points across the entire nation.

Confidence Interval

An estimate indicating the range within which a population parameter is likely to lie, with a certain degree of certainty, based on data from a smaller sample.