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:

Insulated

Protected with a material that prevents heat, sound, or electricity from escaping or entering.

Square Feet

A measure of area equivalent to a square that is one foot on each side.

Irregularly-shaped

Describing an object or area that lacks a regular or uniform shape.

Random Points

Specific locations or values chosen without any particular pattern, order, or predictability.