Which of the following is true?
A) Adam Smith proposed the theory of comparative advantage as the basis for trade in The Wealth of Nations.
B) David Ricardo proposed the theory of absolute advantage as the basis for trade.
C) Absolute advantage is based on comparing the opportunity costs of trading partners.
D) The Ricardian model assumes labor is perfectly mobile.
D
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Explain how accounting rules have been beneficial for markets
What will be an ideal response?
Firms in an oligopoly often do not collude with each other because ________
A) collusion lowers profit B) collusion increases the cost of production C) collusion is illegal D) collusion increases competition
When people decide whether or not to get a flu vaccination, they ignore the ________ and as a result ________
A) marginal private benefit; too few vaccinations are given B) external benefit; too few vaccinations are given C) private cost; too many vaccinations are given D) marginal external cost; vouchers must be provided E) social cost; too many vaccinations are given
Refer to Table 7-6. Which country has an absolute advantage in producing belts?
A) Estonia B) Morocco C) both countries D) neither country