Which of the following is most likely to be an untraded good in a Ricardian two-country, multi-good model?
A) steel
B) textiles
C) haircuts
D) petroleum
E) telemarketer services

Question

Quizplus · Accepted Answer

Untraded goods are those that are not traded between two countries. In a two-country, multi-good model, untraded goods are those that are consumed domestically and are not exported or imported. Haircuts are a typical example of an untraded good as they are mostly consumed domestically and do not involve cross-border trade. Steel, textiles, petroleum, and telemarketer services are generally internationally traded, making them unlikely candidates for untraded goods.

Which of the Following Is Most Likely to Be an Untraded