In the Ricardian model, if a country’s trade is restricted, this will

In the Ricardian model, if a country’s trade is restricted, this will cause all EXCEPT which?

A) limited specialization and the division of labor
B) reduced volume of trade and reduced gains from trade
C) nations to produce inside their production possibilities curves
D) a country to produce some of the product of its comparative disadvantage
E) raised costs as more diverse product is produced internally

 

ANSWER

C

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