In the Ricardian model, wages are equal across industries because:
A) employers care for their workers.
B) workers prefer to work in exporting industries.
C) workers are freely mobile between industries.
D) workers are freely mobile between countries.

Question

Quizplus · Accepted Answer

In the Ricardian model, wages are equal across industries because workers are freely mobile between industries. This means that if one industry has higher wages than another, workers will move to that industry, increasing the supply of labor and lowering wages until they are equalized.

In the Ricardian Model, Wages Are Equal Across Industries Because