Most economists,according to the textbook,prefer the Heckscher-Ohlin theory to Ricardo's theory (i.e.comparative advantage) because which of the following two factors?
A) It makes fewer simplifying assumptions and it has been subjected to many empirical tests
B) It has been subjected to many empirical tests and it has stood the test of time
C) It makes fewer simplifying assumptions and it has been acknowledged by the World Trade Organization as the better of the two theories
D) It has been acknowledged as the better of the two theories by the World Trade Organization, and it has stood the test of time
E) Ricardo's theory is almost 200 years old, while Heckscher-Ohlin's theory is quite modern
Correct Answer:
Verified
Q23: Swedish economists,_ and _,advanced a theory of
Q24: One of the limitations to the theory
Q25: In terms of explaining why some countries
Q26: Frankel and Romer found that on average,a
Q27: The Heckscher-Ohlin theory argues that the pattern
Q29: Dynamic gains in both the stock of
Q30: Which of the following statements is a
Q31: The Paul Samuelson critique looks at what
Q32: _ is the basic message of the
Q33: _ argued that comparative advantage rises from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents