Which of the following statements describe what the Ricardian model
Predicts as a nation improves its technology and productivity?
I.Its standard of living will rise.
II.Wages of its workers will rise.
III.It will lose its absolute advantage.
A)I
B)II
C)III
D)I and II

Question

Quizplus · Accepted Answer

The Ricardian model predicts that as a nation improves its technology and productivity, its standard of living will rise and wages of its workers will rise. However, it does not predict that the nation will lose its absolute advantage. Therefore, option I and II are correct but option III is incorrect.

Which of the Following Statements Describe What the Ricardian Model