In the 2-Factor, 2-Good Heckscher-Ohlin Model, an Influx of Workers

question 56

Multiple Choice

In the 2-factor, 2-good Heckscher-Ohlin model, an influx of workers from across the border would

• A) move the point of production along the production possibility curve.
• B) shift the production possibility curve outward, and increase the production of both goods.
• C) shift the production possibility curve outward and decrease the production of the labor-intensive product.
• D) shift the production possibility curve outward and decrease the production of the capital-intensive product.
• E) shift the possibility curve outward and displace preexisting labor.

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Definitions:

Earnings Forecasts

Predictions of earnings for the future accounting period, prepared by financial analysts.

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, goodwill, and intellectual property.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, showing what the company owns and owes.

Noncurrent Assets

Long-term investments or properties that a company doesn't expect to convert into cash within one year.