Multiple Choice
Which of the following has been confirmed by empirical tests of the Ricardian model?
A) The unimportance of economies of scale as a cause of trade.
B) Companies tend to export goods in which they have a relatively high level of productivity.
C) The existence of nontraded goods results in a high degree of specialization among countries.
D) International trade has no impact on income distribution.
E) All predictions of the model for a multi- product,multi- country world are highly unrealistic.
Correct Answer:

Verified
Correct Answer:
Verified
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