The Ricardian Model Demonstrates That

question 31

Multiple Choice

The Ricardian model demonstrates that

• A) trade between two countries will benefit both countries.
• B) trade between two countries may benefit both regardless of which good each exports.
• C) trade between two countries may benefit both if each exports the product in which it has a comparative advantage.
• D) trade between two countries may benefit one but harm the other.
• E) trade between two countries always benefits the country with a larger labor force.

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Definitions:

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and tax, as well as any non-operational income and expenses.

Loss

A financial situation where expenses exceed revenues.

Pension Expense

The total cost recognized by an employer for an accounting period regarding the company’s pension plan, comprising service costs, interest costs, plan amendments, and other factors.

Operating Segments

Components of an enterprise that engage in business activities earning revenues and incurring expenses, whose operational results are regularly reviewed by the entity's chief operating decision maker.