International economics mcq set 4

121. The Heckscher-Ohlin model rules out the classical model’s basis for trade by assuming that ___ is (are) identical between countries.A. Factor endowmentsB. Factor intensitiesC. TechnologyD. Opportunity costs AnswerC. Technology 122. According to the Heckscher-Ohlin modelA. Everyone automatically gains from tradeB. The gainers from trade outnumber the losers from tradeC. The scarce factor necessarily gains…

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