Multiple Choice
Which of the following is one of the unrealistic assumptions that the simple Ricardian model of comparative advantage used in the text is based on?
A) There are many countries and many more goods in the world.
B) Each country has a fixed stock of resources.
C) Free trade changes the efficiency with which a country uses its resources.
D) Differences in the prices of resources in different countries exist.
Correct Answer:
Verified
Correct Answer:
Verified
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