Moderate

G. MecDougall showed in his tests that ?

Correct answer: B. relatively high U.K labor productivity was associated with relatively higher U.K export ratios

  • A. relatively higher U.S labor productivity was associated with relatively higher U.K export ratios
  • B. relatively high U.K labor productivity was associated with relatively higher U.K export ratios
  • C. Labor productivity ratios and export ratios were not associated with each other
  • D. None of the above

Explanation

MacDougall’s test supported the comparative-advantage link between relative labour productivity and export performance: industries with relatively high productivity in a country tended to have relatively high exports from that country. Thus the statement about higher U.K. productivity and higher U.K. export ratios fits the finding.

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