Which of the following is the reason most economists prefer Heckscher-Ohlin theory to Ricardo's theory?
A) Heckscher-Ohlin stresses the differences in productivity between nations.
B) Ricardo's theory considers factor endowments to describe national competitiveness.
C) Heckscher-Ohlin theory makes fewer simplifying assumptions.
D) Ricardo's theory considers the law of marginal returns.

Question

Which of the following is the reason most economists prefer Heckscher-Ohlin theory to Ricardo's theory?
A) Heckscher-Ohlin stresses the differences in productivity between nations.
B) Ricardo's theory considers factor endowments to describe national competitiveness.
C) Heckscher-Ohlin theory makes fewer simplifying assumptions.
D) Ricardo's theory considers the law of marginal returns.

Quizplus · Accepted Answer

Most economists prefer the Heckscher-Ohlin theory to Ricardo's theory because it makes fewer simplifying assumptions.

Which of the Following Is the Reason Most Economists Prefer