In the Ricardian model, comparative advantage is likely to be due to
A) scale economies.
B) home product taste bias.
C) greater capital availability per worker.
D) labor productivity differences.
E) political pressure.

Question

Quizplus · Accepted Answer

The Ricardian model is based on differences in labor productivity, so comparative advantage is likely due to differences in the productivity levels of labor between countries.

In the Ricardian Model, Comparative Advantage Is Likely to Be