[Solved] The Ricardian model exhibits gains from trade:

McqMate

Q.	The Ricardian model exhibits gains from trade:
A.	Only if each country has an absolute advantage in one of the industries.
B.	For both trading countries.
C.	Only for one of the trading countries.
D.	Only if countries specialize completely.
Answer» B. For both trading countries.

852

0

Do you find this helpful?

12

View all MCQs in

International Economics

Discussion

No comments yet

Related MCQs

As opposed to the Ricardian model of comparative advantage, the assumption of diminishing returns in the Heckscher-Ohlin model means that the probability is greater that with trade
As a result of trade, specialization in the Ricardian model tends to be
A nation engaging in trade according to the Ricardian model will find its consumption bundle
In the Ricardian model, if a country's trade is restricted, this will cause all except which?
The opportunity cost of producing computers in terms of Web pages is 50 in Country A and is 10 in Country B. Based on the Ricardian model, what can we conclude about the pattern of trade?
In the Ricardian model, when two countries trade freely, the relative price of the goods they are trading is determined by:
The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former
In the Ricardian model:
Which of the following is NOT an assumption in the Ricardian model?
If a nations terms of trade is ½ its trade partners terms of trade is