Which of the Following Is a Major Limitation of the Simple

question 57

Multiple Choice

Which of the following is a major limitation of the simple Ricardian model of comparative advantage?

• A) The model ignores the principle of diminishing marginal returns.
• B) The model recommends excessive governmental intervention in trade.
• C) The outcome of the model suggested by Ricardo is a zero-sum game.
• D) The model is against the idea of engaging in free trade with nations.

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Definitions:

Posterior Pituitary

is the rear part of the pituitary gland; it stores and releases antidiuretic hormone (ADH) and oxytocin, which are produced in the hypothalamus.

Neural Crest Cells

Cells derived from the crests of the forming neural tube in the embryo; together with the mesoderm, they form the mesenchyme of the embryo; they give rise to part of the skull, the teeth, melanocytes, sensory neurons, and autonomic neurons.

Adrenal Cortex

The outer region of the adrenal glands that produces vital steroid hormones such as cortisol, aldosterone, and androgens.

Enteric Nervous System

The Enteric Nervous System is a network of neurons that govern the functions of the gastrointestinal tract, often referred to as the "second brain."