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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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