Because the Ricardian Trade Theory Recognized Only How Supply Conditions

question 120

Multiple Choice

Because the Ricardian trade theory recognized only how supply conditions influence international prices, it could determine

• A) the equilibrium terms of trade.
• B) the outer limits for the terms of trade.
• C) where a country chooses to locate along its production possibilities frontier.
• D) where a country chooses to locate along its trade triangle.

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