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:

Incremental Change

A method of making changes gradually in small, manageable steps instead of through one large comprehensive shift.

Excise Tax

A tax imposed on specific goods, services, or activities, either as a fixed amount per unit (quantity tax) or as a percentage of the price (ad valorem tax).

Strategic Change

The process of implementing new strategies in an organization to address significant shifts in its internal or external environment.

Diversity Of Labor

The inclusion of a wide range of employees from different backgrounds, cultures, and experiences in the workforce.