The focus of the Ricardian model is on how differences in _________ influence internationaltrade patterns.A) demandB) comparative costsC) absolute costsD) transportation costs

7. The Ricardian model attributes the gains from trade associated with the principle of comparativeadvantage result toA) differences in resources.B) differences in technology.C) gravity relationships among countries.D) differences in preferences.

According to Ricardian model, trade between two countries can benefit both countries ifA) each country exports that good in which it has a comparative advantage.B) each country enjoys superior terms of trade.C) each country has a more elastic demand for the imported goods.D) each country has a more elastic supply for the exported goods.E) each country produces a wide range of goods for export.

In the Ricardian model, one of the countries does not gain from trade, while another enjoys gains from trade when  Countries have similar technologies Correct Answer  One country is much larger than another   Countries have different technologies and are of comparable size You Answered  One country has comparative advantage in production of both goods

In the Ricardian model, if a country's trade is restricted, this will cause all except which?A) limited specialization and the division of laborB) reduced volume of trade and reduced gains from tradeC) nations to produce inside their production possibilities curvesD) a country to produce some of the product of its comparative disadvantageE) raised costs as more diverse product is produced internally

Consider a Ricardian model where both countries have expenditure share on manufactures  𝜃=12, Country 1 has 𝐴𝑚=2 and 𝐴𝑠=4, Country 2 has  𝐴𝑚∗=2 and  𝐴𝑠∗=3 and 𝐿=𝐿∗=100. Which of the following is TRUE? With free trade:Group of answer choicesCountry 1 consumes 𝐶𝑚=200 and 𝐶𝑠=200Country 2 consumes 𝐶𝑚∗=100 and 𝐶𝑠∗=200The relative price of manufactures to services is 𝑃𝑚𝑃𝑠=3