The Central Prediction of the Hecksher-Ohlin Theorem Is That

question 15

Multiple Choice

The central prediction of the Hecksher-Ohlin theorem is that

• A) international goods prices equalize under foreign trade
• B) comparative advantages depend on the abundance of factor inputs
• C) international trade disperses technology, speeding convergence
• D) all nations move beyond their production possibilities sets with free trade
• E) exchange rates adjust to ensure purchasing power parity

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Definitions:

Aldosterone

A hormone produced by the adrenal gland that helps regulate blood pressure by controlling sodium and potassium levels in the body.

ADH

Antidiuretic hormone, also known as vasopressin, a hormone that regulates the body's retention of water by increasing the concentration of water in the blood.

Urine Osmolality

A measure of the concentration of solutes in urine, which can provide insight into the body's water balance and kidney function.

Urine Volume

The total amount of urine excreted by the kidneys over a specified period, an important indicator of kidney and overall fluid balance.