Empirical Tests of the HO Model Have Had Mixed Results

question 27

Multiple Choice

Empirical tests of the HO model have had mixed results.One explanation for this is that

• A)the Ricardian model is more detailed.
• B)it is difficult to measure factor endowments.
• C)it does not explain the effects of trade on income.
• D)it assumes that countries have different technologies.

---

Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period, typically measured as the percent change in GDP.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by GDP.

Saving

Refers to the portion of income that is not spent on consumption but rather put aside for future use, often in a deposit account or as an investment.

Health Outcomes

The changes in health status or quality of life that result from the delivery of healthcare services or intervention.