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In the 2-Factor, 2-Good Heckscher-Ohlin Model, an Influx of Workers

Question 7

Multiple Choice

In the 2-factor, 2-good Heckscher-Ohlin model, an influx of workers from across the border would


A) move the point of production along the production possibility curve.
B) shift the production possibility curve outward, and increase the production of both goods.
C) shift the production possibility curve outward and decrease the production of the labor-intensive product.
D) shift the production possibility curve outward and decrease the production of the capital-intensive product.
E) shift the possibility curve outward and displace preexisting labor.

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