In a Two Country and Two Product Ricardian Model,a Small

question 67

Multiple Choice

In a two country and two product Ricardian model,a small country is likely to benefit more than the large country because

• A) the large country will wield greater political power, and hence will not yield to market signals.
• B) the small country is less likely to trade at price equal or close to its autarkic (domestic) relative prices.
• C) the small country is more likely to fully specialize.
• D) the small country is less likely to fully specialize.
• E) the small country can raise wages.

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Definitions:

Direct Observation

A research method where behaviors or events are recorded as they naturally occur, without interference or manipulation by the observer.

Internal Locus of Control

The belief that one's actions and behaviors are responsible for the outcomes in their life, rather than external forces.

External Locus

A psychological concept where individuals believe that their lives are controlled by external forces rather than their own actions.

Reciprocal Determinism

A concept in psychology introduced by Albert Bandura, suggesting that a person's behavior is influenced by personal factors and their environment, with each factor influencing and being influenced by the other simultaneously.