Which of the following is one of the unrealistic assumptions that the simple Ricardian model of comparative advantage used in the text is based on?
A) There are many countries and many more goods in the world.
B) Each country has a fixed stock of resources.
C) Free trade changes the efficiency with which a country uses its resources.
D) Differences in the prices of resources in different countries exist.
Correct Answer:
Verified
Q45: According to Adam Smith's theory of absolute
Q46: Considered to be the first theory of
Q47: Which of the following theories of international
Q48: The flaw with mercantilism was that it
Q49: An inconsistency in the mercantilist doctrine,as pointed
Q51: Mercantilists saw no virtue in _.
A)a large
Q52: To an even greater degree than the
Q53: _ theory suggests that consumers in all
Q54: A country intentionally keeps its currency value
Q55: A situation in which gains by all
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents