McqMate
| Q. |
Which among the following is NOT an assumption of H-O Theorem |
| A. | there are two countries involved. each country has two factors (labour andcapital) and produce two commodities either labour intensively or capital intensively. |
| B. | there is no perfect competition in both commodity and factor markets. all production functions are hertogenious. production function is subject to increasing or decreasing returns to scale. |
| C. | there are no transportation costs. |
| D. | factors are freely mobile within a country but immobile between countries. |
| Answer» B. there is no perfect competition in both commodity and factor markets. all production functions are hertogenious. production function is subject to increasing or decreasing returns to scale. | |
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