Post Utme Igbinedion University 2024 Economics Question 16

Practice objective / multiple choice question 16 from the 2024 Post Utme Igbinedion University Economics examination.

Post Utme Igbinedion University 2024 Economics Objective / Multiple Choice
Question 16 POST_UTME_IGBINEDION_UNIVERSITY • 2024 • ECONOMICS • objective

The Heckscher-Ohlin model assumes that countries specialize in the production of goods for which they have a comparative advantage. However, this model has been criticized for its inability to explain the phenomenon of 'unbalanced trade'. What is the primary reason for this criticism?

Answer Options

A. The model assumes that countries have identical production functions.
B. The model fails to account for the role of techno\logy in determining comparative advantage.
Correct Answer C. The model assumes that countries have identical \endowments of factors of production.
D. The model fails to account for the role of government policies in determining trade patterns.
Correct Answer
C
Correct Option:
The model assumes that countries have identical \endowments of factors of production.

About This Question

This is Post Utme Igbinedion University 2024 Economics Question 16. It is one of the objective questions from the 2024 Post Utme Igbinedion University Economics examination.

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