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Chako Chako
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8 years ago
The Ricardian two-country two-good model predicts that there are potential benefits from trade, but NOT
A) the mechanism that determines which country will specialize in which good.
B) the effect of trade on income distribution.
C) when one country has significantly lower wages than the other country.
D) when one country has an absolute advantage in the production of both goods.
E) when both countries have the same types of technology available.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 158 times
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machukianmachukian
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8 years ago
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Chako Author
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#2
8 years ago
Correct!
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#3
8 years ago
Thanks for the feedback, I'm sure others will appreciate it too
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