Factor Endowments and Comparative Advantage Quiz

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BrotherlyQuartz355
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10 Questions

According to the Heckscher-Ohlin theory, how many factors of production are considered in the model?

Two

What is the basis of comparative advantage in the context of international trade?

Differences in factor endowments across nations

In the Heckscher-Ohlin theory, how many goods are considered in the model?

Two

How does international trade impact relative factor prices within and across nations?

It affects relative factor prices

According to the Heckscher-Ohlin theory, what is assumed about the technology in both nations?

It is the same in both nations

According to the Heckscher-Ohlin theory, how many nations are considered in the model?

One nation

What is assumed about the technology in both nations in the Heckscher-Ohlin theory?

Technology is the same in both nations

In the Heckscher-Ohlin theory, how many factors of production are considered in the model?

Two factors of production

How does international trade impact relative factor prices within and across nations according to the Heckscher-Ohlin theory?

It equalizes relative factor prices

What is the basis of comparative advantage in the context of international trade according to the Heckscher-Ohlin theory?

Differences in factor endowments

Test your understanding of international economics with this quiz on factor endowments and the Heckscher-Ohlin theory. Explore how comparative advantage is linked to differences in factor endowments and how trade influences relative factor prices between nations.

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