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.

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

10. The Ricardian model of comparative advantage lends support to the argument thatA) trade tends to worsen the conditions of unskilled labor in rich countries.B) trade tends to worsen the conditions of owners of capital in rich countries.C) trade tends to worsen the conditions of workers in poor countries.D) trade tends to worsen the conditions of workers in rich countries.E) trade is mutually beneficial to the countries that engage in it.

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.

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

2. The Ricardian theory of comparative advantage states that a country has a comparativeadvantage in rice ifA) unit labor requirement of rice is higher in that country compared to unit labor requirement ofrice in other countryB) unit labor requirement of rice is lower in that country compared to unit labor requirement ofrice in other countryC) wage rates in that country are highD) both b and cE) None of the above