The HeckscherOhlin model assumes that production
Techniques within a nation use the factors of production:
A)at different intensities depending on changing technology and which nation you are discussing.
B)at different intensities for each industry, so that one is more or less intensive in that factor than the other.
C)at the same intensity for each industry-for example, the ratio of capital to labor is the same for every industry in
The nation.
D)in no definite pattern.

Question

The Heckscher­Ohlin model assumes that production
Techniques within a nation use the factors of production:
A)at different intensities depending on changing technology and which nation you are discussing.
B)at different intensities for each industry, so that one is more or less intensive in that factor than the other.
C)at the same intensity for each industry-for example, the ratio of capital to labor is the same for every industry in
The nation.
D)in no definite pattern.

Quizplus · Accepted Answer

The Heckscher­Ohlin model assumes that production techniques within a nation use factors of production at different intensities for each industry. One industry may be more capital-intensive while another may be more labor-intensive. Therefore, option B is the correct answer. Option A implies that production techniques change depending on technology and location, which is not a fundamental assumption of the H-O model. Option C assumes that each industry in a nation uses the same ratio of capital to labor, which is not necessarily true. Option D is too vague and does not provide any meaningful information about the H-O model.

The Heckscher­Ohlin Model Assumes That Production

The HeckscherOhlin Model Assumes That Production