The Ricardian Model of Comparative Advantage Is Based on All

question 189

Multiple Choice

The Ricardian model of comparative advantage is based on all of the following assumptions except:

• A) Only two nations and two products
• B) Product quality varies among nations
• C) Labor is the only factor of production
• D) Labor can move freely within a nation

---

Definitions:

Antitrust Action

A lawsuit or legal move to challenge practices that restrain trade or competition in the market.

Sherman Act

A United States antitrust law passed in 1890 that prohibits monopolistic practices and promotes competition.

Antitrust Law

Legislation intended to promote competition and prevent monopolies by regulating anti-competitive business practices.

Regulatory Standards

Established rules and specifications issued by authoritative bodies to ensure products, services, or processes meet specific requirements.