Which of the Following Has Been Confirmed by Empirical Tests

question 4

Multiple Choice

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.

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