According to the factor endowment model of Heckscher and Ohlin, countries heavily endowed with land will ?
Correct answer: C. Export products that are land-intensive
- A. Devote excessive amounts of resources to agricultural production
- B. Devote insufficient amounts of resources to agricultural production
- C. Export products that are land-intensive
- D. Import products that are land-intensive
Explanation
A country relatively abundant in land has a lower opportunity cost of producing land-intensive goods. It therefore tends to specialize in and export agricultural or other land-intensive products.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
Should international transportation costs decrease the effect on international trade would include a (an) ?
Intra-industry trade theory ?
The theory of overlapping demand predicts that trade in manufactured goods is unimportant for countries with very different ?
Boeing aircraft company was able to over its production costs of the first - jumbo jetll in the seventies because Boeing could market it to several foreign airlines in addition to domestic airlines. This illustrates ?
The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries ?