The Heckscher-Ohlin Model

question 189

Multiple Choice

The Heckscher-Ohlin model

• A)provides support for levying tariffs on imported goods.
• B)supports restrictions on trade.
• C)provides an explanation for why a country has a comparative advantage in a good.
• D)explains why mercantilism is inefficient.
• E)explains why comparative advantage changes over time because of investment in physical and human capital.

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Definitions:

Insignificant Variables

Variables in a statistical model that do not significantly influence the outcome of the model.

Step-wise Regression

A method of fitting regression models in which the choice of predictive variables is carried out by an automatic procedure.

Bonferroni Criterion

A statistical correction method used to address the problem of multiple comparisons by lowering the threshold for statistical significance.

Substantial Bias

An evident prejudice or tendency that significantly affects the outcome of a study or analysis.