Which of the Following Statements Is True

question 59

Multiple Choice

Which of the following statements is true?

• A) The Heckscher-Ohlin model offers a reasonable explanation of the pattern of trade and the gains from trade.
• B) The Heckscher-Ohlin trade model does not offer an explanation of the pattern of trade.
• C) The Heckscher-Ohlin trade model does not offer an explanation of the gains from trade.
• D) The Ricardian trade model (with labor as the only input) offers a better explanation of the pattern of trade and the gains from trade than the Heckscher-Ohlin model.

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Definitions:

Highway Tractor

A type of heavy-duty vehicle designed primarily for hauling trailers over long distances on highways.

Tandem Drive

Tandem drive refers to a vehicle configuration where two sets of drive axles are arranged in a row, commonly seen in heavy-duty trucks, to distribute weight and increase traction.

Axles

Mechanical components that connect wheels on opposite sides of a vehicle, transferring power from the drivetrain to the wheels for movement.

Freight Volume

The amount of goods, cargo, or freight being transported or capable of being transported.