Which of the Following Is a Theory That Can Be

question 8

Multiple Choice

Which of the following is a theory that can be used to justify limited government intervention to support the development of certain export-oriented industries?

• A) Comparative advantage theory
• B) Ricardo's theory
• C) New trade theory
• D) Heckscher-Ohlin theory

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Definitions:

Testable Predictions

Hypotheses or forecasts that can be confirmed or refuted through experimentation or observation.

Psychological Theory

A set of principles aimed at explaining and predicting behavior, emotions, and thoughts.

Sugar Pill

A placebo used in clinical trials, a harmless pill given to participants for psychological effect rather than for a medical effect.

Control Group

In experimental research, a group of subjects that does not receive the treatment or intervention being studied and is used as a benchmark to measure the effects of that treatment.