G. MacDougal compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the:
Correct answer: A. Ricardian theory of comparative
- A. Ricardian theory of comparative
- B. Heckscher Ohl in theory of comparative advantage
- C. Linder theory of overlapping demand all of the above
- D. None of these
Explanation
MacDougall compared U.S. and U.K. export patterns with relative labour productivity as an empirical test of Ricardo’s comparative-advantage theory. The Heckscher-Ohlin theory instead emphasizes relative factor endowments, while Linder emphasizes overlapping demand.
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