Use the below mentioned table for the following question(s).
Suppose that all goods are made with two factors-labor and capital.The table below shows the total endowments of each factor in the United States and Canada.
Table 4.1
Endowment of Labor and Capital

-Based on Table 4.1,according to the Heckscher-Ohlin Theorem,U.S.exports should be goods that
A)intensively use labor input.
B)intensively use capital input.
C)use capital and labor in about equal proportions.
D)use either labor or capital input,depending on the good.
E)Not enough information to tell.

Question

Use the below mentioned table for the following question(s).
Suppose that all goods are made with two factors-labor and capital.The table below shows the total endowments of each factor in the United States and Canada.
Table 4.1
Endowment of Labor and Capital
 
-Based on Table 4.1,according to the Heckscher-Ohlin Theorem,U.S.exports should be goods that
A)intensively use labor input. 
B)intensively use capital input. 
C)use capital and labor in about equal proportions. 
D)use either labor or capital input,depending on the good. 
E)Not enough information to tell.

Quizplus · Accepted Answer

According to the Heckscher-Ohlin Theorem, a country will export goods that intensively use the factor of production that the country has in abundance. In this case, the US has a larger endowment of labor compared to Canada, so the US would export goods that intensively use labor input.

Use the Below Mentioned Table for the Following Question(s)