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Multiple Choice Question

What was the comparative advantage theory of David Ricacrdo?

  • A
    When a country can produce a good or service at a lower opportunity cost than another country.
  • B
    Pursuit of self-interest, division of labor, and freedom of trade.
  • C
    A theory of free-market capitalism directly opposed to government intervention.
  • D
    A theory centers on entrepreneurship, knowledge, innovation and technological advancement.
Explanation:
Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners.
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