Question: Like the simple Ricardian model, the specific factors model () A. assumes an economy that produces two goods and that can allocate its labor supply




Like the simple Ricardian model, the specific factors model () A. assumes an economy that produces two goods and that can allocate its labor supply between the two sectors. O B. distinguishes between mobile and specific factors. O C. has a production possibilities curve that reflects diminishing returns to labor. O D. allows for the existence of factors of production besides labor.According to the gravity model, a characteristic that tends to affect the probability of trade existing between any two countries is O A. their colonial-historical ties. O B. the average weight/value of their traded goods. O C. the distance between them. O D. the number of varieties produced on the average by their industries. O E. their cultural affinity
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