Asked by Dan Francis Rodriguez on Jun 09, 2024
Verified
The _____ model analyzes trade under the assumption that opportunity costs are constant and therefore production possibility frontiers are straight lines.
A) pauper labor fallacy
B) Ricardian
C) Heckscher-Ohlin
D) oligopoly
Ricardian Model
An economic theory that focuses on comparative advantage, suggesting that countries should specialize in producing goods they can produce most efficiently.
Production Possibility Frontiers
A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.
Constant
An unchanging or fixed condition in an equation or experiment, serving as a benchmark or point of reference.
- Understand the models explaining international trade, such as Ricardian and Heckscher-Ohlin models, and their assumptions.
Verified Answer
Learning Objectives
- Understand the models explaining international trade, such as Ricardian and Heckscher-Ohlin models, and their assumptions.
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