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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