The Ricardian Model Attributes the Gains from Trade Associated with the Principle

question 36

Multiple Choice

The Ricardian model attributes the gains from trade associated with the principle of comparative advantage result to

• A) differences in technology.
• B) differences in preferences.
• C) differences in labor productivity.
• D) differences in resources.
• E) gravity relationships among countries.

Explore the concepts of risk sharing and shirking in franchise relationships.

Grasp the dynamics of franchisee versus franchisor relationships.

Understand the basic principles of franchising and its benefits versus company-owned stores.

Recognize the relationship between franchisor and franchisee including roles and responsibilities.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.