[Solved] A nation engaging in trade according to the Ricardian model will find its consumption bundle

McqMate

Q.	A nation engaging in trade according to the Ricardian model will find its consumption bundle
A.	Inside its production possibilities frontier.
B.	On its production possibilities frontier.
C.	Outside its production possibilities frontier.
D.	Inside its trade-partner's production possibilities frontier.
Answer» C. Outside its production possibilities frontier.

518

0

Do you find this helpful?

8

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
In the Ricardian model, if a country's trade is restricted, this will cause all except which?
The Ricardian model exhibits gains from trade:
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:
If a nation gains from trade its consumption point is
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?