Most Economists,according to the Textbook,prefer the Heckscher-Ohlin Theory to Ricardo's

question 86

Multiple Choice

Most economists,according to the textbook,prefer the Heckscher-Ohlin theory to Ricardo's theory (i.e.comparative advantage) because which of the following two factors?

• A) It makes fewer simplifying assumptions and it has been subjected to many empirical tests
• B) It has been subjected to many empirical tests and it has stood the test of time
• C) It makes fewer simplifying assumptions and it has been acknowledged by the World Trade Organization as the better of the two theories
• D) It has been acknowledged as the better of the two theories by the World Trade Organization, and it has stood the test of time
• E) Ricardo's theory is almost 200 years old, while Heckscher-Ohlin's theory is quite modern