Ricardo's Model of Comparative Advantage Assumed All of the Following

question 73

Multiple Choice

Ricardo's model of comparative advantage assumed all of the following except:

• A) In each nation,labor is the only input
• B) Costs do not vary with the level of production
• C) Perfect competition prevails in all markets
• D) Transportation costs rise as distance increases between countries

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Definitions:

Disregard

To pay no attention or too little attention to; to ignore or overlook intentionally.

Down Payment

A portion of the purchase price paid to the seller at the time of sale.

Deposit

Money given in advance as security or part payment, indicating commitment to a purchase or agreement and may be refundable under specific conditions.

Specific Performance

A judicial remedy requiring a party to fulfill their obligations under a contract, typically used when monetary damages are inadequate.