Author Question: The pauper labor theory, and the exploitation argument A) are theoretical weaknesses that limit ... (Read 35 times)

jman1234 · **on:** Jun 30, 2018

The pauper labor theory, and the exploitation argument

A) are theoretical weaknesses that limit the applicability of the Ricardian concept of comparative advantage.
B) are theoretically irrelevant to the Ricardian model, and do not limit its logical relevance.
C) are not relevant because the Ricardian model is based on the labor theory of value.
D) are not relevant because the Ricardian model allows for different technologies in different countries.
E) invalidate the Ricardian model.

Question 2

With flexible exchange rates, central banks do not have to finance deficits because BOP equilibrium is restored by changes in exchange rates.

Indicate whether the statement is true or false