According to the Textbook,most Economists Prefer the Heckscher-Ohlin Theory to Ricardo's

question 33

Multiple Choice

According to the textbook,most economists prefer the Heckscher-Ohlin theory to Ricardo's theory (i.e.comparative advantage) because of 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.

---

Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes.

Algorithms

Instructions or procedures designed to solve a specific problem or perform a specific task through a series of steps, pivotal in programming and technology.

Complex Strategies

Involves multifaceted and often sophisticated plans or methods aimed at achieving a particular goal or solving specific problems.

Subgoals

Intermediate goals or problems to solve that put one in a better position for reaching a final goal or solution.