- CFA Exams
- CFA Level I Exam
- Study Session 5. Economics (2)
- Reading 17. International Trade and Capital Flows
- Subject 2. International Trade
CFA Practice Question
In the Ricardian model of trade, under autarky (a closed economy) ______
A. relative prices are determined by technology.
B. countries tend to specialize in the production of a single good.
C. production is determined by comparative advantage.
Explanation: Technology is the source of comparative advantage.
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