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    Question

    If the endowment of some resource increases, the industry that uses that resource most intensively will increase its output while the other industry will decrease its output, was given by:

    A Rybczynski Correct Answer Incorrect Answer
    B Stolper Correct Answer Incorrect Answer
    C Heberler Correct Answer Incorrect Answer
    D Heksher-Ohlin Correct Answer Incorrect Answer
    E Samuelson Correct Answer Incorrect Answer

    Solution

    The Rybczynski Theorem (RT) says that if the endowment of some resource increases, the industry that uses that resource most intensively will increase its output while the other industry will decrease its output. The relative factor intensity is measured by the ratio of factor use in each industry.

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