Question 3How does the Specific-Factors model discussed in this chapter differ from the Ricardian model wecovered in Chapter 2?The Ricardian model assumes labor is the only factor of production, while the Specific-Factor model assumeslabor, land, and capital are all factors of production.The Factor-Specific model assumes constant opportunity cost, while the Ricardian model does not.O The Specific-Factor model contends that trade generates gains for some factors and losses for others. On theother hand, the Ricardian model assumes trade generated gains for all workers.O The PPF in the Specific-Factors model is bowed outwards, while in the Ricardian model it is a straight line.The Ricardian model assumes movement across workers, while the Specific-Factors model does not.

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