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  • Advantageous trade can occur between countries if the countries ________ in their technological abilities to produce goods and services. #211
  • The theory of comparative advantage assumes two countries producing two goods using ________as the only factor of production #212
  • In Ricardian Model it is assumed that ________ goods are produced by both countries. We assume a barter economy. #213
  • In David Ricardo’s original presentation of the model, he focused exclusively on the ________ side. #214
  • John Stuart Mill introduced _________into the model #215
  • A country has an absolute advantage in the production of a good relative to another country if it can produce the good at lower cost or with ______ productivity #216
  • A country has a comparative advantage in the production of a good if it can produce that good at a ___________ opportunity cost relative to another country. #217
  • We assume a ________ economy. This means that no money is used to make transactions. #218
  • ___________cost is defined generally as the value of the next best opportunity. #219
  • Labor productivity is defined as the quantity of __________ that can be produced with a unit of labor. #220
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