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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