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

question 9

Multiple Choice

Which of the following is an assertion of the Heckscher-Ohlin model?

• A) The wage-rental ratio determines the capital-labor ratio in a country's industries.
• 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:

Accounts Payable Subsidiary Ledger

A detailed ledger that breaks down the amounts owed by a business to its suppliers or vendors into individual accounts.

Purchases Journal

A special journal used to record all purchases of merchandise on credit, tracking the accumulation of goods over a period.

Equipment Purchased

The acquisition of physical assets like machinery or technology used in the production of goods or services.

Accounts Receivable Subsidiary Ledger

A detailed ledger that tracks individual customer transactions and balances, complementing the overall accounts receivable account.