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:

Neuroticism

A personality trait characterized by anxiety, moodiness, worry, envy, and jealousy.

Openness to Experience

A personality trait that features the desire to explore new activities, ideas, and experiences.

Five-Factor Model

A theory that describes human personality through five dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

A personality trait that describes individuals who are outgoing, energized by being around other people, and tend to seek stimulation in the external world.