According to the Ricardian principle of comparative advantage, international trade increases a nation's total output because:
A) the nation's resources are used where they are most productive.
B) the output of the nation's trading partner declines.
C) the nation can produce outside of its production possibilities frontier.
D) the nation is able to increase its consumption.
Correct Answer:
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Q2: In trade, if a nation has the
Q3: David Ricardo's model explains trade based on:
A)
Q4: A country's factors of production includes:
A) its
Q5: The Ricardian model focuses on how:
A) countries'
Q6: The Ricardian model focuses on how differences
Q7: Ricardo's theory made a number of assumptions,
Q8: Which of the following is NOT considered
Q9: When a firm in one nation purchases
Q10: Which of the following is the MOST
Q11: Which of the following is NOT a
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