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. O b. shift the production possibility curve outward and decrease the production of the capital-intensive product. O c. shift the production possibility curve outward and decrease the production of the labour-intensive product. O d. shift the production possibility curve outward, and increase the production of both goods. O e. shift the possibility curve outward and displace pre-existing labour.

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. O b. shift the production possibility curve outward and decrease the production of the capital-intensive product. O c. shift the production possibility curve outward and decrease the production of the labour-intensive product. O d. shift the production possibility curve outward, and increase the production of both goods. O e. shift the possibility curve outward and displace pre-existing labour.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 4PA

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