Which of the following is an assertion of the Heckscher-Ohlin model?
A) The wage-rental ratio is determined by relative product prices.
B) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.
C) In the long-run, labor is mobile and capital is not.
D) Factor price equalization will occur only if there is costless mobility of all factors across borders.
E) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.
A
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The signals that guide the allocation of resources in a market economy are
a. surpluses and shortages. b. quantities. c. government policies. d. prices.
A price discriminating monopolist will
A. charge a higher price for a good with more market demand. B. charge the same price to all consumers. C. charge more to those consumers who have more substitute goods. D. charge a lower price to those consumers who have more elastic demand.
The foreign exchange market is the market on which the ________ of various nations are traded for one another.
A. currencies B. goods and services C. international financial securities D. stocks and bonds
When inflation occurs
A. each dollar of income will buy more output than before. B. the purchasing power of money decreases. C. the purchasing power of money increases. D. all prices are rising.