Answer: See explanation
Explanation:
The Heckscher-Ohlin model refers to an economic theory which states that countries will export the goods that they can produce efficiently and in large quantities while they'll import those that they are less efficient in producing.
According to the H-O theorem, the pattern of trade that exists between countries as a result of the characteristics that are possessed by the countries. In such case, a capital-abundant country can produce a capital intensive good efficiently and therefore should export the capital intensive good. Likewise, a labor-abundant country can produce labor intensive good efficiently and therefore should export the labor-intensive good.
Answer: C) Is accepted as true until proven false
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Explanation:
We cannot prove the hypothesis to be 100% true because there might be data out there that we haven't accounted for, or some scenario that we haven't thought of yet. There's always going to be room for uncertainty and doubt. Keep in mind that such doubt does not necessarily mean that the theory is automatically false.
So all of this rules out choice A.
Choice B is ruled out as well because data supporting a hypothesis doesn't falsify the hypothesis. The term "falsify" means "to prove false" as you'd expect.
Choice C is the answer because the data seems to support the hypothesis and again we leave room for error. It's quite possible that in some unspecified date in the future, there are better methods of measurement to get a better sense of what's going on.
Choice D is ruled out because a law refers to something like the law of gravity. It's something you observe but it doesn't explain why something works. It doesn't provide the underlying mechanics of what's going on. We simply just report what we see which is exactly what an observation is.
