In the Ricardian Model, Comparative Advantage Is Likely to Be

question 40

Multiple Choice

In the Ricardian model, comparative advantage is likely to be due to

• A) scale economies.
• B) home product taste bias.
• C) greater capital availability per worker.
• D) labor productivity differences.
• E) political pressure.

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Definitions:

Unskilled Workers

Laborers who have limited or no special skills or training, often employed in relatively simple tasks.

Difficult Time

A period characterized by challenges, adversities, or hardships that individuals, groups, or entities face.

Quantity Controls

Government-imposed limits on the amount of a good that can be produced or sold in a market.

Demand Price

Demand Price is the highest price that consumers are willing and able to pay for a good or service at a given quantity.