The principle of comparative advantage as we know it today was developed by
A)Aristotle.
B)David Ricardo.
C)John Maynard Keynes.
D)Adam Smith.

Question

Quizplus · Accepted Answer

The principle of comparative advantage was developed by David Ricardo in his book "On the Principles of Political Economy and Taxation" in 1817. The principle describes the benefits of free trade and specialization between countries, allowing them to produce goods and services in which they have a comparative advantage, leading to increased efficiency and overall welfare. While Adam Smith developed the concept of absolute advantage, it was Ricardo who introduced the concept of comparative advantage. Aristotle and John Maynard Keynes did not contribute to this economic principle.

The Principle of Comparative Advantage as We Know It Today