Multiple Choice
David Ricardo's simplified trade model is based on all of these assumptions EXCEPT
A) costs do not vary with the level of production.
B) the level of technology is fixed for all nations.
C) capital is the only factor of production.
D) perfect competition prevails in all markets.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: In Adam Smith's trade theory, _ is
Q15: If a country's terms of trade worsens,
Q16: Because the Ricardian theory of comparative advantage
Q17: Figure 2.1. Production Possibilities Frontier <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7110/.jpg"
Q18: The example of Rubbermaid in Wooster, Ohio
Q20: With increasing opportunity costs, comparative advantage depends
Q21: All of the following may be exit
Q22: Which is NOT a relatively mobile occupation,
Q23: Ricardo's theory of comparative advantage does NOT
Q24: With constant opportunity costs, a nation will