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.

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Definitions:

Tukey's Method

A statistical technique used to identify outliers within a dataset, often used in conjunction with analysis of variance (ANOVA) tests.

Honestly Significant Differences

A statistical technique used to determine if the difference between two or more groups is significant and not likely due to chance.

Sample Means

The average value of a set of data points drawn from a larger population, representing an estimate of the population mean.

Analysis of Variance

Analysis of variance (ANOVA) is a statistical method used to compare the means of three or more samples to determine if at least one of the sample means is statistically significantly different from the others.