In the Heckscher-Ohlin Model with Two Goods and Two Factors

question 89

Multiple Choice

In the Heckscher-Ohlin model with two goods and two factors, an increase in one factor will cause:

• A) an increase in the production of the good that uses the factor intensively.
• B) a decrease in the production of the good that use the factor intensively.
• C) an increase in the production of the good that does not use the factor intensively.
• D) no change in the production of either good.

---

Definitions:

Degrees of Freedom

Refers to the number of independent values or quantities which can be assigned to a statistical distribution or to the number of independent choices left after fixing the parameters of a system.

T Distribution

A type of probability distribution that is symmetrical and bell-shaped, used in hypothesis testing for small sample sizes.

Normal Distribution

A bell-shaped distribution that is symmetric about the mean, where data near the mean are more frequent in occurrence.

Degrees of Freedom

The number of independent values or quantities that can vary in the analysis without breaking any constraints.