David Ricardo's Simplified Trade Model Assumes All of the Following

question 205

Multiple Choice

David Ricardo's simplified trade model assumes all of the following except

• A) trade is balanced,thus ruling out money flows between nations
• B) firms make production decisions in an attempt to maximize profit
• C) transportation costs are zero
• D) tariffs and quotas are used to protect a nation's producers from foreign competition

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Definitions:

Conditioned Reinforcer

A stimulus that becomes reinforcing by being linked to a primary reinforcer, also referred to as a secondary reinforcer.

Primary Reinforcer

A naturally reinforcing stimulus, such as food or drink, that fulfills a basic biological need and does not require learning to become desirable.

Soothing Back Rub

A gentle and calming massage on the back designed to relieve stress and tension.

Word of Praise

An expression or utterance of approval, commendation, or admiration.