One Way in Which the Heckscher-Ohlin Model Differs from the Ricardo

question 45

Multiple Choice

One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ________ is (are) identical in all countries.

• A) factor endowments
• B) scale of production
• C) factor intensities
• D) technology
• E) opportunity costs

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Definitions:

Inventory System

A method for tracking the quantities, locations, and statuses of products a company has in stock, both for sales and production purposes.

Computerized

Systems or processes that are performed or managed by computers, typically involving automation of manual tasks.

Cost Flow Assumption

An accounting method used to determine the cost of goods sold and ending inventory, such as FIFO, LIFO, or average cost.

Periodic

An accounting system where inventory and cost of goods sold are determined at the end of an accounting period, rather than tracked continuously.