In the 2-factor, 2 good Heckscher-Ohlin model, the production ...

[leo leo]

In the 2-factor, 2 good Heckscher-Ohlin model, the production possibility frontier is kinked when
 
  A) there is no factor substitution in production.
  B) the opportunity cost of production is constant.
  C) there are unemployed factor resources.
  D) a country does not engage in trade.
  E) transportation costs are very high.

Question 2

A trade policy designed to alleviate some domestic economic problem by exporting it to foreign countries is know as a(n)
 
  A) international dumping policy.
  B) countervailing tariff policy.
  C) beggar thy neighbor policy.
  D) trade adjustment assistance policy.
  E) redistribution quota policy.

[ansleighelindsey]

Answer to Question 1

A

Answer to Question 2

C

[leo leo]

Excellent

[dyrone]

Gracias!