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:

Benefit

An advantage or profit gained from something.

Long-Run Equilibrium

A state in which all aspects of the market, including supply and demand, are balanced over a sustained period.

Club Meeting

A gathering of members belonging to a specific club aimed at discussing agendas, activities, or other topics of mutual interest.

Attendance

Refers to the measure of presence or participation in prescribed activities or environments.