Question

The Heckscher-Ohlin Theory holds that countries that have an abundance of certain resources enjoy an absolute or comparative advantage over other countries. Which of the following is NOT one of the factors that Heckscher and Ohlin considers scarce?

a. land
b. labor
c. capital
d. education
e. None of the above

Answer 1

The Heckscher-Ohlin Theory considers land, labor, and capital as factors of production that can be scarce. However, education is not explicitly mentioned as one of the factors they consider scarce.

Step-by-step explanation:

The Heckscher-Ohlin Theory considers land, labor, and capital as factors of production that can be scarce. However, education is not explicitly mentioned by Heckscher and Ohlin as one of the factors they consider scarce.