The Ricardian Model Demonstrates That

question 31

Multiple Choice

The Ricardian model demonstrates that

• A) trade between two countries will benefit both countries.
• B) trade between two countries may benefit both regardless of which good each exports.
• C) trade between two countries may benefit both if each exports the product in which it has a comparative advantage.
• D) trade between two countries may benefit one but harm the other.
• E) trade between two countries always benefits the country with a larger labor force.