Question

Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R.
Assertion A: According to the Heckscher-Ohlin model, free trade results in equalisation of factor prices across nations.
Reason R: This is because the model assumes perfect international mobility of the factors of production.
In the light of the above statements, choose the correct answer from the options given below:

• A. Both A and R are true and R is the correct explanation of A
• B. Both A and R are true but R is NOT the correct explanation of A
• C. A is true but R is false
• D. A is false but R is true

Answer 1

The Correct Option is C

The correct option is(C): A is true but R is false