Which of the Following Statements Describes What the Ricardian Model

question 178

Multiple Choice

Which of the following statements describes what the Ricardian model predicts as a nation improves its technology and productivity?

• A) Its standard of living will rise.
• B) Wages of its workers will fall.
• C) It will lose its absolute advantage.
• D) It will lose its comparative advantage.

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Definitions:

Promotional Allowances

Financial incentives or discounts offered by suppliers to their distributors or retailers to encourage the promotion of specific products.

Sale Of Securities

The act of selling stocks, bonds, or other financial instruments, typically in the financial markets.

Profits

The financial gain obtained after subtracting expenses from revenue.