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:

Employer's Authority

The power or right of an employer to direct and control their employees and make decisions about the workplace.

Democratic Principles

Fundamental beliefs and constitutional principles upon which democracy is based, including freedom, equality, sovereignty of the people, and the rule of law.

Flexibility

In the context of employment, refers to adaptable work arrangements and terms, such as flexible work hours, telecommuting options, and variable job duties.

Union Contracts

Legally binding agreements between labor unions and employers, detailing wages, hours, working conditions, and rights of workers.