How can G. MacDougall’s empirical findings be best interpreted?

Multiple choice question for Foundations Of Modern Trade Theory. Select an option, then review the explanation below.

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Proof contradicting the classical trade theoryIndication disproving the Heckscher-Ohlin frameworkConfirmation supporting the Ricardian modelValidation of the Heckscher-Ohlin theory

Explanation

MacDougall’s empirical data provides confirmation for the Ricardian model, rather than supporting the classical or Heckscher-Ohlin theories.

Practice related questions from the same subject.

1.According to G. MecDougall's research, what relationship did he find between labor productivity and export ratios?
2.Which of the following factors can contribute to dynamic gains from trade?
3.Under conditions of free trade, when would Canada fail to gain any benefits from trading with Sweden?
4.In a self-sufficient economy, where does the production point lie when the community optimizes its living standards?
5.In an economy, when a society achieves the highest possible standard of living, where is its production and consumption point located?

How can G. MacDougall’s empirical findings be best interpreted?

Explanation

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