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
Q2: A country will gain relatively more from
Q3: Q4: Which economist introduced the simple trade model Q5: In the simple trade model,what is assumed Q6: Suppose Mexico can produce 5 autos or Q8: Based on Table 3.1,trade between the United Q9: Why did Adam Smith criticize the trade Q10: Based on Table 3.1,the pre-trade relative price Q11: Based on Table 3.1,if the world price Q12: 
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