Other Economics Answers

If labor and capital can be substituted for each other

in the production of both commodities, when can

we say that one commodity is capital intensive and

the other labor intensive?

What were the results of empirical tests on the relationship between human capital and international trade? Natural resources and international trade? What is the status of the H–O theory today?

What is meant by the Leontief paradox? What are some possible explanations of the paradox? How can human capital contribute to the explanation of the paradox?

Explain why the Heckscher–Ohlin theory is a general equilibrium model. 

What does the factor–price equalization theorem postulate? What is its relationship to the international mobility of factors of production?

What does the Heckscher–Ohlin theory postulate? Which force do Heckscher and Ohlin identify as the basic determinant of comparative advantage and trade? 

If labor and capital can be substituted for each other in the production of both commodities, when can we say that one commodity is capital intensive and the other labor intensive? 

What is meant by capital-abundant nation? What determines the shape of the production frontier of each nation? 

What is meant by labor-intensive commodity? Capital-intensive commodity? Capital–labor ratio?