The Ricardian Model of International Trade Demonstrates That Trade Can

question 58

Multiple Choice

The Ricardian model of international trade demonstrates that trade can be mutually beneficial. Why, then, do governments restrict imports of some goods?

• A) The Ricardian model is often incorrect in its prediction that trade can be mutually beneficial.
• B) Import restrictions are the result of trade wars between hostile countries.
• C) Trade can have substantial effects on a country's distribution of income.
• D) Imports are only restricted when foreign-made goods do not meet domestic standards of quality.
• E) Restrictions on imports are intended to benefit domestic consumers.

---

Definitions:

Rules

Guiding principles or regulations designed to govern behavior or processes in various contexts.

Language

A complex system of communication using sounds, symbols, or gestures that enable humans to express thoughts, feelings, and ideas.

Arrangement

The act of organizing or arranging components or elements according to a specific plan or design.

Cognitive Revolution

The cognitive revolution is a period in the 20th century marked by a shift in psychology from a behaviorist approach to an emphasis on mental processes and how they affect behavior.