Most Economists Prefer Ricardo's Theory to the Heckscher-Ohlin Theory Because

question 4

True/False

Most economists prefer Ricardo's theory to the Heckscher-Ohlin theory because it makes fewer simplifying assumptions.

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Definitions:

National Defense

The government functions and mechanisms aimed at protecting a country against external aggression, threats, and maintaining sovereignty.

Free Market

An economic system where prices are determined by unrestricted competition between privately owned businesses, without excessive government control or intervention.

Externality

A consequence of an economic activity experienced by unrelated third parties; it can be either positive (beneficial) or negative (harmful).

Education's Benefit

Refers to the positive impacts of education on an individual's abilities, earning potential, and societal contributions.