Suppose an economist develops an international trade model based on the assumption that there are only two countries and two goods. We can say that the model O is worthless, since the actual world has many countries trading many goods. can be useful in the classroom, but has no use in the real world. can be useful only in situations involving two countries and two goods. can be useful in helping economists to understand the complex world of international trade involving many countries and many goods.

Suppose an economist develops an international trade model based on the assumption that there are only two countries and two goods. We can say that the model O is worthless, since the actual world has many countries trading many goods. can be useful in the classroom, but has no use in the real world. can be useful only in situations involving two countries and two goods. can be useful in helping economists to understand the complex world of international trade involving many countries and many goods.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: International Trade

Section: Chapter Questions

Problem 10QP

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