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) The wage-rental ratio is determined by relative product prices.
• B) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.
• 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) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.

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Definitions:

Palliative

Care or treatment focused on relieving symptoms and improving quality of life rather than curing the disease.

Palliat

Short for palliative, referring to care that focuses on relieving symptoms and improving quality of life for patients with serious illnesses.

Hodgkin Disease

A type of lymphoma characterized by the presence of Reed-Sternberg cells, leading to the abnormal growth of cells in the lymphatic system.

Lymphoma

A type of cancer that begins in the lymphatic system, particularly in lymphocytes, a type of white blood cell.