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; land intensive
B)land; labor intensive
C)labor; capital intensive
D)capital; capital intensive
E)land; capital intensive

Question

Quizplus · Accepted Answer

In the Heckscher-Ohlin model, a country will have a production possibility frontier biased towards the production of goods that intensively use the country's abundant factor. Therefore, a country with a relative abundance of capital will have a PPF biased towards the production of capital-intensive goods.

In the 2- Factor,2- Good Heckscher- Ohlin Model,the Country with a Relative