In the text, which of the following statements is NOT an
Assumption of the HeckscherOhlin model?
A)There are two countries, each of which produces two goods using labor and capital.
B)Labor and capital can move freely between the production of two goods.
C)There is free trade between the countries.
D)Labor and capital can move freely between the two countries.

Question

In the text, which of the following statements is NOT an
Assumption of the Heckscher­Ohlin model?
A)There are two countries, each of which produces two goods using labor and capital.
B)Labor and capital can move freely between the production of two goods.
C)There is free trade between the countries.
D)Labor and capital can move freely between the two countries.

Quizplus · Accepted Answer

The Heckscher-Ohlin model assumes that labor and capital can move freely between the production of two goods, that there are two countries, and that there is free trade between them. However, the model does not assume that labor and capital can move freely between the two countries.

In the Text, Which of the Following Statements Is NOT