The simple comparative advantage model assumed that trade
A) changes efficiency with which a country utilizes resources.
B) changes a country's stock of resources.
C) allows for dynamic changes in the marketplace.
D) does not change a country's stock of resources.

Question

Quizplus · Accepted Answer

The simple comparative advantage model assumed that trade does not change a country's stock of resources or the efficiency with which it utilizes those resources.

The Simple Comparative Advantage Model Assumed That Trade