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

question 12

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 the labor-intensive good and decrease production of the capital-intensive good.
• 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:

Cellular Technology

A type of wireless communication that is most commonly used for mobile phone networks, relying on a network of cell sites to transmit data.

4G

The fourth generation of broadband cellular network technology, succeeding 3G and offering higher speeds.

3G

The third generation of mobile telecommunications technology, enabling faster data transmission rates for mobile phones and data terminals.

Wi-Fi Hotspot

A place where individuals can connect to the Internet, often through Wi-Fi, by using a wireless local area network (WLAN) which is linked to an Internet service provider via a router.