Which of the following is false?
A)International differences in tastes, if sufficiently large, could overturn the comparative advantage predictions of the HO model.
B)The classical and HO models make similar assumptions about international differences in technology.
C)The HO model predicts that some groups will be hurt by international trade.
D)Both the classical and the HO models predict that countries gain from international trade.

Question

Quizplus · Accepted Answer

The classical model assumes that countries have identical technology, while the HO model assumes that technology is identical within each country but can differ across countries.

Which of the Following Is False