Asked by Tatiana Jones on Jun 12, 2024
Verified
In a Ricardian model of international trade,the production possibility frontiers are _____,indicating that the opportunity cost of increasing the production of one item relative to another _____.
A) convex;is constant
B) concave;increases
C) straight lines;is constant
D) straight lines;decreases
Ricardian Model
A model in international trade theory that explains international trade patterns based on comparative advantage.
Production Possibility Frontiers
A curve depicting all maximum output possibilities for two goods, given a set of inputs resources, and technology, illustrating the trade-offs in production choices.
Opportunity Cost
Forgoing possible benefits from other options by selecting a particular one.
- Acquire knowledge of the frameworks that elucidate international trade, notably the Ricardian and Heckscher-Ohlin models, and their foundational premises.
- Understand the impact of constant and rising opportunity costs on the formation of production possibility curves.
Verified Answer
Learning Objectives
- Acquire knowledge of the frameworks that elucidate international trade, notably the Ricardian and Heckscher-Ohlin models, and their foundational premises.
- Understand the impact of constant and rising opportunity costs on the formation of production possibility curves.
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