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Economics – Ricardo-Viner Model | StudyDaddy.com

Answer True, False or Uncertain and Provide an Explanation  

1. In Ricardo-Viner model with mobile labour, an increase in prices of even one of the goods will lead to an increase in wages, that will in turn decrease profits of producers.

2. In Heckscher-Ohlin model, in a world of two factors (labor and land) and two goods, an increase of the retirement age will lead to an increase of the production of the land-intensive good.

3. In Heckscher-Ohlin model, with free trade, prices of factors must be same in all countries.

4. Ricardo-Viner model is a simplified Heckscher-Ohlin model.

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