The Difference Between Ricardo's Theory and the Heckscher-Ohlin Theory Is

question 125

Multiple Choice

The difference between Ricardo's theory and the Heckscher-Ohlin theory is that the Heckscher-Ohlin theory

• A) makes more simplifying assumptions.
• B) cannot be subjected to empirical tests.
• C) actually predicts trade patterns with greater accuracy.
• D) argues that the pattern of international trade is determined by differences in national factor endowments.
• E) suggests that trade is a positive-sum game in which all countries that participate realize economic gains.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response on its own.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that automatically triggers a response without any need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.