David Ricardo's Simplified Trade Model Is Based on All of the Assumptions

question 82

Multiple Choice

David Ricardo's simplified trade model is based on all of the assumptions except

• A) costs do not vary with the level of production
• B) the level of technology is fixed for all nations
• C) capital is the only factor of production
• D) perfect competition prevails in all markets

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Definitions:

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.

Pitch

The perceived frequency of a sound, determining its "highness" or "lowness."

Amplitude

The height or strength of a wave signal, determining its intensity or power, often used in the context of sound, light, or electronic signals.

Sound Waves

Vibrations that travel through air or another medium and can be heard when they reach a person's or animal's ear.