According to the Ricardian Model, Differences in Labor Productivity Are

question 122

Multiple Choice

According to the Ricardian model, differences in labor productivity are due to

• A) relative shortages of natural resources, such as oil.
• B) discrimination in the hiring and training of labor.
• C) technological differences among countries.
• D) shortages of capital stock, which is reflected in a low capital-to-labor ratio.
• E) inefficient and unproductive trade union rules.

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A formal document issued by a buyer to a seller, authorizing the purchase of goods or services as specified at agreed-upon terms.

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Forward Contract

A derivative financial instrument where two parties agree to buy or sell an asset at a predetermined future date and price.

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