The HeckscherOhlin model of international trade uses _____ and ______ to explain trade patterns.
a. comparative; absolute advantage
b. factor abundance; factor intensity
c. factor availability; factor usability
d. tariffs; quotas
Ans: b. factor abundance; factor intensity
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Indicate whether the statement is true or false
Suppose there are two industries, A and B. Suppose that mergers are proposed in both industries, and the Herfindahl-Hirschman Index would increase by 500 in each one. If antitrust officials allow the mergers in industry A but challenge the mergers in industry B, the most likely explanation is that
a. there are political motivations to antitrust enforcement b. industry A was already less competitive than industry B c. industry A had a balanced oligopoly and industry B did not d. industry A started as a more competitive industry than B e. antitrust authorities made a random decision