hw3 - Econ4550/6550 InternationalTrade Assignment3...

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Econ 4550/6550 International Trade Assignment 3 Due on: Monday, October 5 Answer ALL questions. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. [1x5 = 5] 1) In the 2 - factor, 2 good Heckscher - Ohlin model, an influx of workers from across the border would A) move the point of production along the production possibility curve. B) shift the production possibility curve outward and decrease the production of the labor - intensive product. C) shift the production possibility curve outward and decrease the production of the capital - intensive product. D) shift the production possibility curve outward, and increase the production of both goods. E) None of the above. 1) 2) One way in which the Heckscher - Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ________ is (are) identical in all countries. A) factor of production intensities B) factor of production endowments C) opportunity costs D) scale economies E) technology 2) 3) As opposed to the Ricardian model of comparative advantage, the assumption of diminishing
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hw3 - Econ4550/6550 InternationalTrade Assignment3...

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