Ricardo's model of comparative advantage assumed all of the following except:
A) Trade is balanced,thus ruling out flows of money between nations
B) Firms make production decisions in an attempt to maximize profits
C) Free trade occurs between nations
D) Labor is immobile within a country,but is incapable of moving between countries

Question

Quizplus · Accepted Answer

Ricardo's model assumed that labor was mobile within a country but did not consider the possibility of labor mobility between countries.

Ricardo's Model of Comparative Advantage Assumed All of the Following