1) In the 2-factor, 2-good Heckscher-Ohlin model, the two countries differ in A) tastes and preferences. B) military cap

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1 In The 2 Factor 2 Good Heckscher Ohlin Model The Two Countries Differ In A Tastes And Preferences B Military Cap 1 (58.89 KiB) Viewed 21 times

1) In the 2-factor, 2-good Heckscher-Ohlin model, the two countries differ in A) tastes and preferences. B) military capabilities. C) the size of their economies. D) relative abundance of factors of production. E) labor productivities. 2) If a country produces good Y (measured on the vertical axis) and good X (measured on the horizontal axis), then the absolute value of the slope of its production possibility frontier is equal to A) the opportunity cost of good X. B) the price of good X divided by the price of good Y. C) the price of good Y divided by the price of good X. D) the opportunity cost of good Y. E) the cost of capital (assuming that good Y is capital intensive) divided by the cost of labor. 3) The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former A) has only two countries. B) has only two products. C) has two factors of production. D) has two production possibility frontiers (one for each country). E) has varying wage rates. 4) In the 2-factor, 2-good Heckscher-Ohlin model, the country with a relative abundance of will have a production possibility frontier that is biased toward production of the good. A) labor; labor intensive B) labor, capital intensive C) land; labor intensive D) land; capital intensive E) capital; land intensive