A longrun model of trade basic to the determination of how
Mobile factors of production affect national welfare and the
Returns to the factors is known as:
A)the specificfactors model.
B)the Riparian model.
C)the Chicago model of trade.
D)the HeckscherOhlin model.

Question

A long­run model of trade basic to the determination of how
Mobile factors of production affect national welfare and the
Returns to the factors is known as:
A)the specific­factors model.
B)the Riparian model.
C)the Chicago model of trade.
D)the Heckscher­Ohlin model.

Quizplus · Accepted Answer

The description in the question refers to the Heckscher-Ohlin model, which is commonly used to analyze the impact of mobile factors of production on international trade and national welfare. Option A, the specific-factors model, is also related to trade but focuses on the impact of changes in the availability of specific factors of production on income distribution within a country. Options B and C, the Riparian model and the Chicago model of trade, respectively, are not well-known models in economics and are not relevant to the question.

A Long­run Model of Trade Basic to the Determination of How

A Longrun Model of Trade Basic to the Determination of How