Author Question: The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the ... (Read 53 times)

mrsjacobs44 · **on:** Jun 30, 2018

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 2

The case of New Zealand, described in the text, is concerned with the country's

A) prospects for long term growth.
B) ability to sustain current account deficits.
C) unproductive industrial sector and its prospects for long run growth.
D) labor productivity.
E) exchange rate volatility relative to other currencies.