According to the Heckscher-Ohlin model:
a. a relatively labor scarce country produces labor intensive goods.
b. the labor productivity varies across different countries.
c. the technological advancement varies across countries.
d. the taste and preference patterns of the consumers are not similar across the countries.
e. a capital abundant country exports sophisticated, manufactured products.
Question 2
Which of the following is true?
a. The nature of public goods is such that the government cannot accurately assess the benefits of those affected.
b. National defense and flood control are illustrations of public goods.
c. Just as in the case of external costs, public goods tend to be underprovided by the private sector.
d. All of the above are true.
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