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:

Pharyngeal Tonsils

Also known as adenoids, lymphoid tissue located in the upper part of the throat behind the nose that helps defend against ingested or inhaled pathogens.

Lymphatic Tissue

Lymphatic tissue refers to the collections of lymphocytes and other immune cells within the lymphatic system, contributing to the body's immune response and fluid balance.

Lymph Capillaries

Tiny, thin-walled vessels where lymphatic drainage begins, enabling the transport of lymph from the tissue spaces into the lymphatic system.

Epidermis

The outermost layer of the skin, providing a waterproof barrier and creating our skin tone.