The _____ model analyzes trade under the assumption that opportunity costs are constant and therefore production possibility frontiers are straight lines.

A) pauper labor fallacy
B) Ricardian
C) Heckscher-Ohlin
D) oligopoly

Ricardian Model

An economic theory that focuses on comparative advantage, suggesting that countries should specialize in producing goods they can produce most efficiently.

Production Possibility Frontiers

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Constant

An unchanging or fixed condition in an equation or experiment, serving as a benchmark or point of reference.