Which of the following has been confirmed by empirical tests of the Ricardian model?
A)The unimportance of economies of scale as a cause of trade.
B)Companies tend to export goods in which they have a relatively high level of productivity.
C)The existence of nontraded goods results in a high degree of specialization among countries.
D)International trade has no impact on income distribution.
E)All predictions of the model for a multi- product,multi- country world are highly unrealistic.

Question

Quizplus · Accepted Answer

Empirical tests of the Ricardian model have confirmed that companies tend to export goods in which they have a relatively high level of productivity, aligning with the model's prediction that comparative advantage drives trade patterns.

Which of the Following Has Been Confirmed by Empirical Tests