Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
Q11: Free trade may be good for a
Q12: Given that Sandy can produce 10 economics
Q14: Assume that both the United States and
Q15: Competition between the United States and Mexico
Q17: Given that Sandy can produce 10 economics
Q18: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3033/.jpg" alt=" The
Q19: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3033/.jpg" alt=" The
Q20: Suppose that Canada can produce 15 timber
Q21: A country possesses a comparative advantage in
Q33: What is productivity?