The Ricardian model can be simplified and made more explanatory by assuming that there is only one resource used in producing goods. What did Ricardo assume the resource was?

a. capital
b. technology
c. labor
d. loanable funds


Ans: c. labor

Economics

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A federal budget ________ occurs when the government spends less than it collects in taxes

A) floor B) surplus C) equilibrium D) deficit

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A monopolist can maximize profits by:

A. selling as much as he can produce. B. producing at the level of output at which MR = 0. C. following the same rules as a perfectly competitive firm. D. selling an output where P = ATC.

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Which of the following is NOT a reason why we see little international policy coordination?

A. The benefits of international policy coordination are likely to be small in most situations. B. Governments often have difficulty in delivering on their commitments as part of any international policy coordination. C. The interventions by the different governments according to the policy coordination are usually effective only in the very long run. D. The policy goals of different countries are often incompatible.

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Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000

What are the implicit costs of her business? A) $12,000 B) $30,000 C) $72,000 D) $86,000

Economics