Question

True or false,why

a. The Heckscher-Ohlin model can explain the rising phenomenon of skill premium from the mid to late 20th century to the present, because the phenomenon is ubiquitous throughout the world.

(B) The phenomenon of agglomeration of human production activities cannot explain the reasons for trade.

(C) The reason for the increasing opportunity cost of production in the specific factor model is that the production function is a fixed-scale return

Answer 1

A:- true, by introducing skill-intensity reversals the heckscher-ohlin model framework captures the stylized skill premium.both in developed and less developed countries.

B:- true, the basic concept of agglomeration economies is that production is facilitated when there is a clustering of economic activities. The existence of agglomeration economies is central to the explanation of how cities is increase in size and population. Which places the phenomenon on a larger scale.the concentration of economic activity in cities is one reason for their development and growth.