The Heckscher-Ohlin Model Predicts All of the Following Except

question 42

Multiple Choice

The Heckscher-Ohlin model predicts all of the following except

• A) the volume of trade.
• B) which country will export which product.
• C) which factor of production within each country will gain from trade.
• D) that relative wages will tend to become equal in both trading countries.
• E) that trade increases a country's overall welfare.

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Definitions:

Population standard deviation

A measure of the dispersion or variability within a total population.

Sample median

The midpoint value of a sample data set, where half the numbers are above the median and half are below.

Confidence interval

An extent of values, obtained via sample statistical analysis, seen as likely embracing the unknown value of a population attribute.

Random sample

A subset of individuals chosen from a larger set where each member has an equal chance of being selected.