Multiple Choice
The Ricardian model of comparative advantage is based on all of the following assumptions except:
A) Only two nations and two products
B) Product quality varies among nations
C) Labor is the only factor of production
D) Labor can move freely within a nation
Correct Answer:

Verified
Correct Answer:
Verified
Q25: If Canada produces computers at a lower
Q64: The theory of reciprocal demand best applies
Q133: The principle of absolute advantage asserts that
Q149: There are two explanations of constant opportunity
Q167: As international trade proceeds, a country will
Q185: Under free trade,Sweden enjoys all of the
Q188: According to Ricardo,a country will have a
Q191: Ricardo's theory of comparative advantage does not
Q192: The equilibrium prices and quantities established after
Q194: Improvements in productivity may lead to decreasing