Ricardo's theory of comparative advantage was of limited real-world validity because it was founded on the
A) labor theory of value.
B) capital theory of value.
C) land theory of value.
D) entrepreneur theory of value.

Question

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Ricardo's theory was based on the labor theory of value, which was later criticized for not taking into account other factors of production such as capital and land. Therefore, the theory's real-world validity was limited.

Ricardo's Theory of Comparative Advantage Was of Limited Real-World Validity