Consider the problem of wage inequality gap in the USA. How would you explain this problem accepting provisions of Heckscher-Ohlin model? Select one – the most appropriate answer.

Question

BlackTom AI · Accepted Answer

The question asks to explain the wage inequality gap in the USA using the Heckscher-Ohlin framework and to select the most appropriate statement.
Option 1: 'It may result from international trade with less advanced economies.' While trade with less advanced economies can affect relative wages through factor price movements, this statement is too broad and doesn’t tie directly to the core Heckscher-Ohlin mechanism, which centers on factor endowments (capital and labor) rather than the developmental status of trading partners alone.
Option 2: 'It may result from international trade with economies having relatively high wage.' This is problematic because higher wages in a trading partner don’t automatically translate into wage gaps in the USA; under Heckscher-Ohlin, outcomes depend on relative scarcities and productivities tied to factor endowments, not the partner’s wage level per se. The phrasing also confuses causality with correlational observation.
Option 3: 'It may result from low level of labor-to-capital ratio.' A country’s own factor intensity profile matters, but the Heckscher-Ohlin framework emphasizes relative endowments across countries rather than the absolute labor-to-capital ratio of a single country. While a low labor-to-capital ratio could influence comparative advantages, this statement is incomplete in explaining cross-country wage dispersion through trade.
Option 4: 'It may result from international trade with developed economies.' Similar to Option 2, the identity of trading partners being developed or not is not the central mechanism. The model focuses on relative endowments and the resulting pattern of trade, which then affects factor prices; simply labeling partners as developed does not capture the endowment-based explanation.
Option 5: 'It may result from different level of capital endowment.' This aligns with the Heckscher-Ohlin insight: countries with different relative supplies of capital and labor trade to exploit comparative advantages, and trade can drive factor price equalization tendencies, thereby influencing wages and income distribution within countries. Variations in a country’s capital endowment relative to its trading partners can generate wage differentials and observable inequality through the mechanism of factor price changes.
In summary, each option attempts to connect trade to wage outcomes, but only the last option directly invokes the Heckscher-Ohlin core idea: differential capital endowments across countries shape trade patterns and, through pricing of factors, can influence wage inequality. The other choices misattribute causality, overlook the endowment-based mechanism, or rely on auxiliary concepts clouding the Heckscher-Ohlin logic.

econ_420_120255_249094 Lesson 5 Quiz 2

Consider the problem of wage inequality gap in the USA. How would you explain this problem accepting provisions of Heckscher-Ohlin model? Select one – the most appropriate answer.

查看解析

登录即可查看完整答案

类似问题

Question at position 5 Which theory suggests that nations will develop comparative advantages based on their locally abundant factors?Heckscher-Ohlin theoryAbsolute advantage theoryProduct life cycle theoryStrategic trade theory

Question at position 21 The focus of factor proportions theory is on the __.productivity of the production processcost-effectiveness of the production processuse of depleting production factorsuse of expensive production factors

Considering the diagram below identify which sector is capital-intensive and which is labor-intensive given the reasoning provided. Select one – the most appropriate answer, considering provisions of Heckscher-Ohlin model of international trade.

Considering the diagram below identify which sector is capital-intensive and which is labor-intensive given the reasoning provided. Select one – the most appropriate answer, considering provisions of Heckscher-Ohlin model of international trade.

Assume a labor abundant economy and you are considering the income distribution effect on this economy resulting from international trade. Pick a statement that can best describe that effect, given provisions of Heckscher-Ohlin model. Select one – the most appropriate answer.

Among the given statements pick one that best describes the diagram below (Heckscher-Ohlin model). Select one – the most appropriate answer.

Pick one statement that can be best used to describe the diagram below. Select one – the most appropriate answer, considering provisions of Heckscher-Ohlin model.

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单