The Heckscher-Ohlin Model Simplifies the Analysis by Assuming

question 103

Multiple Choice

The Heckscher-Ohlin model simplifies the analysis by assuming:

• A) there is unemployment in the home country.
• B) the labor force consists of workers with different skill levels.
• C) land is an important factor of production.
• D) there are only two nations producing two goods using two factors of production.

---

Definitions:

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage over a period of time.

Adjusted Cash Balance

The cash amount shown in a company's bank statement, adjusted for deposits in transit, outstanding checks, and bank errors.

Check Register

A personal record book or a digital log used to track checks written, deposits made, and current balance of a checking account.

Bank Statement

A document or electronic file provided by a bank summarizing transactions in an account over a certain period.