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The Criticism That Both the Heckscher-Ohlin Model and the Ricardian

Question 49

Multiple Choice

The criticism that both the Heckscher-Ohlin model and the Ricardian models of comparative advantage are "too static" means


A) The models are too stationary and do not take into account the cost of transporting goods.
B) Neither model incorporates capital as a factor of production.
C) Neither model recognizes that productive factors are scarce and fixed in each country.
D) Neither model recognizes that production technology is constantly changing.

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