What are the two factors of production considered in the factor proportions theory?
A)Technology and capital
B)Land and labor
C)Labor and capital
D)Capital and land
E)Labor and technology

Question

Quizplus · Accepted Answer

The factor proportions theory, also known as the Heckscher-Ohlin theory, considers two factors of production: labor and capital. This theory explains that countries will specialize in and export goods that use their abundant factor(s) of production and import goods that use their scarce factor(s) of production.

What Are the Two Factors of Production Considered in the Factor