According to the Ricardian model, the source of comparative advantage is:
a. differences in labor productivity in the different countries.
b. differences in foreign trade policies followed by the governments of the various countries.
c. differences in resource endowments of the economies.
d. differences in the fields of research and development in the countries.
e. differences in the taste and preferences of the consumers in the different countries.
a
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If the personal assets of the owners can be claimed if the business is bankrupt, the owners are said to have
A) a corporation type of business. B) limited liability. C) separation of ownership from control. D) unlimited liability.
Which of the following is the study of “what is” rather than “what ought to be”?
a. normative economics b. subjective economics c. positive economics d. the theory of the origin of humanity
An exchange rate system under which currencies are allowed to fluctuate with frequent interventions by central banks is called a
A) freely floating system. B) fixed system. C) managed floating system. D) None of the above.
Which of the following is not a reason for compensating wage differentials?
a. The risk involved in certain jobs b. An excess supply of workers in some industries c. A high probability of staying away from home d. To attract more laborers in risky professions e. Unpleasant working consditions