The Ricardian Model (With Constant Opportunity Costs) Predicts That a Nation

question 109

Multiple Choice

The Ricardian model (with constant opportunity costs) predicts that a nation will ______________ in the production of the good it exports.

• A) have a comparative disadvantage
• B) develop shortages
• C) lower the cost of production
• D) specialize completely

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Definitions:

Creativity-Relevant Processes

Cognitive and behavioral processes that facilitate the production of novel and useful ideas or solutions.

Domain-Relevant Skills

The specific abilities and knowledge that are particularly valuable and applicable to a certain field or area of expertise.

Intrinsic Task Motivation

The internal drive to perform a task well for its own sake, rather than for external rewards.

Extrinsic Environmental Components

Factors outside an organization that affect its operation, such as economic conditions, competition, and regulation.