If Labor Productivities Were Exactly Proportional to Wage Levels Internationally

question 35

Multiple Choice

If labor productivities were exactly proportional to wage levels internationally, this would

• A) not negate the logical basis for trade in the Ricardian model.
• B) render the Ricardian model theoretically correct but practically useless.
• C) negate the logical basis for trade in the Ricardian model.
• D) negate the applicability of the Ricardian model if the number of products were greater than the number of trading partners.
• E) demonstrate the validity of the Ricardian model.

Understand the process and criteria for capital rationing in investment decisions.

Identify non-financial factors that influence investment decisions.

Analyze investment proposals using the internal rate of return (IRR) method.

Understand the principle of matching project cash inflows to initial outlay through payback methods.

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Definitions:

Assertiveness Need

The requirement for developing an ability to express one’s opinions, needs, and feelings in a manner that is confident, calm, and positive.

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A psychological requirement for understanding, organizing, and making sense of the world.

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The process of defining clear, achievable objectives to guide personal or professional efforts.

Formal Group

A group structured with specific roles and objectives, often created within organizations to accomplish defined tasks.