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Chako Chako
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9 years ago
Which of the following is an assertion of the Heckscher-Ohlin model?
A) An increase in a country's labor supply will increase production of both the capital-intensive and the labor-intensive good.
B) The wage-rental ratio is determined by relative product prices.
C) Factor price equalization will occur only if there is costless mobility of all factors across borders.
D) Factor endowments determine the technology that is available to a country, which determines the good in which the country will have a comparative advantage.
E) In the long-run, labor is mobile and capital is not.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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machukianmachukian
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9 years ago
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Chako Author
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#2
9 years ago
Good answer, thank you
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#3
9 years ago
Good luck
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