The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former
A) has only two countries.
B) has only two products.
C) has two factors of production.
D) has two production possibility frontiers (one for each country).
E) has varying wage rates.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model includes two factors of production (capital and labor) while the Ricardian model only considers labor as a factor of production. The other options (A, B, D, and E) are not characteristics that distinguish the Heckscher-Ohlin model from the Ricardian model.

The Heckscher-Ohlin Model Differs from the Ricardian Model of Comparative