There are potential gains from trade, according to the Ricardian two-country two-good model, but not: a) When one nation's wages are much lower than those of another nation. b) the system that decides which nation will focus on which good. c) When the same kinds of technologies are accessible in both nations. d) the effect of trade on income distribution. e) when one country has an absolute advantage in the production of both goods.
There are potential gains from trade, according to the Ricardian two-country two-good model, but not: a) When one nation's wages are much lower than those of another nation. b) the system that decides which nation will focus on which good. c) When the same kinds of technologies are accessible in both nations. d) the effect of trade on income distribution. e) when one country has an absolute advantage in the production of both goods.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter15: International Trade And Finance
Section: Chapter Questions
Problem 17SQ
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