Part III:The Heckscher$-$Ohlin Model

$1.$Define relative abundance.

$2.$Briefly describe how comparative advantage is generated in the Heckscher$-$Ohlin model.

$3.$ In the Heckscher$-$Ohlin Model, why is the production possibility frontier bowed outward?

$4.$ Graphically show how the mix of output is chosen to maximize profit.

$5.$ Graphically show how the mix of input is chosen to minimize cost.

$6.$ Use the graph showing how the mix of input is chosen to define relative intensity.

$7.$ Describe the Stolper$-$Samuelson Theorem.

$8.$ Intuitively describe why the real return of capital increases when the price of the capital intensive good relative to that of the labor intensive good increases.

$9.$ Describe the Rybczynski theorem.

$10.$ Use Rybczynski theorem to graphically show how the relative supply changes with factor endowment.

$11.$ Using the Heckscher$-$Ohlin model to predict the patterns of trade and the effect of trade on income distribution.

$12.$ Briefly explain why trade is not a suitable reason causing income inequality during the past $40$ years.

$13.$ According to Acemoglu and Feenstra, how does trade cause income inequality?

$14.$ Briefly explain why technology improvement causes income inequality.

$15.$ Briefly explain why labor share is decreasing during the last $40$ years.

$16.$ Explain why factor prices are equalized by trade.

$17.$ Define factor content of trade.

$18.$ According to Leamer, why does the Leontief paradox exist?

$19.$ According to Trefler, why does the Heckscher$-$Ohlin model fail to predict the patterns of trade and the volume of trade?

$20.$ What is the missing trade?

$21.$ Explain why Taiwans patterns of trade have changed overtime?