Ricardo's Model of Comparative Advantage Assumed All of the Following

question 73

Multiple Choice

Ricardo's model of comparative advantage assumed all of the following except:

• A) In each nation,labor is the only input
• B) Costs do not vary with the level of production
• C) Perfect competition prevails in all markets
• D) Transportation costs rise as distance increases between countries

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Definitions:

Norman Triplett

A psychologist known for conducting one of the earliest experiments in social psychology about the effects of competition on performance.

Racing Cyclists

Athletes who specialize in competitive cycling, often participating in races that test speed, endurance, and strategic skill on various terrains.

Rowing Machines

Exercise equipment that simulates the action of watercraft rowing for the purpose of exercise or training for rowing.

Max Ringelmann

A French agricultural engineer who discovered that individuals exert less effort on a task when they work in a group compared to when working alone, known as the Ringelmann effect.