Use the following chart for the 3 parts Factor Endowments US Belgium Labor 331 11 Capital Stock 100 7 Part 1: According to the chart and the Heckscher-Ohlin theory the US is A. Capital intensive B. Labor intensive C. Both capital and labor intensive D. Best to practice autarky
Use the following chart for the 3 parts Factor Endowments US Belgium Labor 331 11 Capital Stock 100 7 Part 1: According to the chart and the Heckscher-Ohlin theory the US is A. Capital intensive B. Labor intensive C. Both capital and labor intensive D. Best to practice autarky
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: The Markets For The Factor Of Production
Section: Chapter Questions
Problem 8PA
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Question
Use the following chart for the 3 parts
Factor Endowments | US | Belgium |
Labor | 331 | 11 |
Capital Stock | 100 | 7 |
Part 1:
According to the chart and the Heckscher-Ohlin theory the US is
A. |
Capital intensive |
|
B. |
Labor intensive |
|
C. |
Both capital and labor intensive |
|
D. |
Best to practice autarky |
Part 2:
According to the chart and the Heckscher-Ohlin theory the US will _________ labor intensive and ________ capital intensive goods.
A. |
Export, export |
|
B. |
Import, export |
|
C. |
Export, Import |
|
D. |
Import, Import |
|
E. |
Practice Autarky |
Part 3:
According to the chart and the H-O model, when these two countries trade
A. |
US capital owners will be winners |
|
B. |
US labor owners will be winners |
|
C. |
Belgium capital owners will be winners |
|
D. |
Belgium labor owners will be winners |
|
E. |
A and D |
|
F. |
B and C |
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