The Heckscher-Ohlin Model Assumes That There Are Two Countries, Each

question 73

Multiple Choice

The Heckscher-Ohlin model assumes that there are two countries, each of which produces two goods (say manufactures and agriculture) using labor and capital. Which of the following is an additional assumption of the Heckscher-Ohlin model?

• A) The ratio of the quantity of labor to the quantity of capital is different for each nation, resulting in different "endowments" of capital and labor.
• B) One nation has larger quantities of both capital and labor than the other country.
• C) Capital is a specific resource in producing manufactured goods, and labor is a specific resource in producing agricultural goods in each country.
• D) Labor and capital can move between countries.

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Definitions:

Amacrine Cell

A lateral interneuron in the retina of the eye; receives signals from bipolar cells and sends signals back to them or to ganglion cells.

Bipolar Cell

A type of neuron found in the eyes that conducts signals from the photoreceptors to the ganglion cells, integral in the visual pathway.

Cone

(1) In botany, a reproductive structure in many gymnosperms that produces either microspores or megaspores. (2) In zoology, one of the conical photoreceptive cells of the retina that is particularly sensitive to bright light and, by distinguishing light of various wavelengths, mediates color vision. Compare with rod.

Compound Eye

A type of eye found in some arthropods, consisting of multiple small visual units that provide a wide field of vision and the ability to detect movement.