5) In the Heckscher-Ohlin model, countries are assumed to differ only in terms of their A) factor endowments. B) tastes

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5 In The Heckscher Ohlin Model Countries Are Assumed To Differ Only In Terms Of Their A Factor Endowments B Tastes 1 (55.9 KiB) Viewed 30 times

5) In the Heckscher-Ohlin model, countries are assumed to differ only in terms of their A) factor endowments. B) tastes and preferences. C) available technologies. D) factor productivities. E) physical size. 6) One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that is (are) identical in all countries. A) factor endowments B) scale of production C) factor intensities D) technology E) opportunity costs 7) Trade benefits a country by A) increasing available consumption choices. B) reducing the relative price of the exported good. C) increasing the wage rate. D) increasing the real income of all resource owners. E) reducing the need for specialization in production. 8) If a good is capital intensive it means that the good is produced A) using capital as the only input. B) using capital such that the cost of capital is more than 50% of total cost. C) using capital such that the total cost of capital is greater than the total cost of labor. D) using relatively more capital than goods that are not labor intensive. E) using more capital per unit of output than goods that are not capital intensive.