Ask Question
20 November, 21:07

A nation engaging in trade according to the Ricardian model will find its consumption bundle A) inside its production possibilities frontier. B) on its production possibilities frontier. C) outside its production possibilities frontier. D) inside its trade-partner's production possibilities frontier. E) on its trade-partner's production possibilities frontier.

+1
Answers (1)
  1. 20 November, 22:59
    0
    c) Outside its production possibilities frontier

    Explanation:

    The Ricardian model of trade highlights on the fact that trade is beneficial for all the countries involved in international trade. It also suggests that even countries with less advanced technology or resources are going to be benefit from international trading. Remember that a consumption bundle is a set of goods that a consumer may choose to consume.

    Since the Ricardian model of trade is based in international trade, nations engaging in this trades will find its consumption bundle outside its production possibilities frontier (in another partner country)

    Thus, the correct answer is C)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A nation engaging in trade according to the Ricardian model will find its consumption bundle A) inside its production possibilities ...” in 📘 Social Studies if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers