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Questions › UGC-NET › UGC-NET 2025 › Q59
2 marksInternational Economics › Theories of international trade › The Heckscher-Ohlin modelHardabout 2 min

UGC-NET 2025 Question 59: Theories of international trade

Which of the following indicate that country 'B' is a capital-abundant country? (Options compare capital/labour endowment ratios and factor-price ratios between countries A and B.)

A. (Total Capital/Total Labour)_B > (Total Capital/Total Labour)_A

B. (Total Capital/Total Labour)_B < (Total Capital/Total Labour)_A

C. (Price of Labour/Price of Capital)_B > (Price of Labour/Price of Capital)_A

D. (Price of Capital/Price of Labour)_B > (Price of Capital/Price of Labour)_A

E. mixed capital/price ratio.

Choose the correct answer from the options given below:

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Answer and worked solution

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Theories of international trade has come up 151 times in 6 exams since 2006.

What this question tests

This question is on The Heckscher-Ohlin model, part of Theories of international trade in International Economics.

Trade patterns explained by differences in factor endowments.

TestStop has 20 past-paper questions on this subtopic.

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