Chapter 3Labor Productivity and Comparative AdvantageThe Ricardian Model31Chapter 3 Labor Productivity and Comparative Advantage The Ricardian ModelnMultiple Choice Questions1.Countries trade with each other because they are _ and because of _.(a)different, costs(b)similar, scale economies(c)different, scale economies(d)similar, costs(e)None of the above.Answer: C2.Trade between two countries can benefit both countries if(a)each country exports that g
