David Ricardo's simplified trade model is based on all of the 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

Question

Quizplus · Accepted Answer

Ricardo's model assumes labor is the only factor of production, not capital.

David Ricardo's Simplified Trade Model Is Based on All of the Assumptions