In His Empirical Test of the Principle of Comparative Advantage

question 127

True/False

In his empirical test of the principle of comparative advantage, G.MacDougall found that relatively high export ratios are associated with relatively high labor productivity.

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Definitions:

Double-Entry System

An accounting method that records each transaction in at least two accounts, ensuring the accounting equation (Assets = Liabilities + Equity) remains balanced.

Debit Accounts

Accounts that are increased by debits and decreased by credits, commonly including assets and expenses.

Credit Accounts

Financial accounts that track money owed to creditors; they increase with credit entries and decrease with debit entries, reflecting the entity's borrowing of funds.

Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that Assets = Liabilities + Equity.