Factor endowment theory is also known as

Related MCQs

• According to the factor endowment model of Heckscher and Ohlin, countries heavil y endowed with land will:
• ____________states that at constant commodity prices, an increase in the quantity of one factor increases the production of the commodity intensive in this factor and reduces the output of the other commodity which is intensive in the constant factor.
• The H O theory postulates that as a result of trade the differences in factor prices between nations
• If a commodity is classified as "labor-intensive" at one set of relative factor prices but "capital-intensive" at another set of relative prices, this situation is known as
• Paper gold is also known as
• “Free trade between two countries in H O model will equalize relative factor prices provided there is incomplete specialization.” This is
• Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land. Note that wages are the returns to labor and rents are the returns to land. According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B.
• In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border would
• In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
• If relatively capital-abundant country A opens trade with relatively labor- abundant country B an the trade takes place in accordance with the Heckscher-Ohlin Theorem. What would be the consequence for factor prices (w/r) in the two countries?