Which Statement About the Heckscher-Ohlin Model Is Correct

question 135

Multiple Choice

Which statement about the Heckscher-Ohlin model is correct?

• A) It does not offer an explanation of the gains from trade.
• B) It does not offer an explanation of the patterns of trade.
• C) It offers an explanation of the effects of trade on the returns to capital and labor.
• D) It offers an explanation of the effects of trade on factor abundance.

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Definitions:

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Levels

Different positions or stages in a hierarchical process, system, or organization; in statistics, it refers to the different conditions or values that an independent variable can take.

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