Which of the Following Is the Reason Why Most Economists

question 16

Multiple Choice

Which of the following is the reason why most economists prefer Heckscher-Ohlin theory to Ricardo's theory?

• A) Heckscher-Ohlin stresses on the differences in productivity between nations.
• B) Ricardo's theory considers factor endowments to describe national competitiveness.
• C) Heckscher-Ohlin theory makes fewer simplifying assumptions.
• D) Ricardo's theory considers the law of marginal returns.

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Definitions:

Instrumentality

The perceived relationship between performance and the attainment of certain outcomes, key to understanding motivation in expectancy theory.

Expectancy

In the context of motivation, expectancy refers to an individual's belief that a particular effort will lead to a desired performance level.

Valence

In motivation theory, the value an individual places on the expected outcome of a particular course of action.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees over a certain period.