In David Ricardo's theory of trade,_______________ is assumed to be the primary input for production.
A)labor
B)capital
C)land
D)raw materials

Question

Quizplus · Accepted Answer

David Ricardo's theory of trade, specifically his principle of comparative advantage, assumes labor as the primary input for production. This theory suggests that even if a country does not have an absolute advantage in producing any goods, it can still benefit from trade by specializing in goods that it can produce more efficiently (i.e., at a lower opportunity cost) than other goods, with labor as the key factor in this calculation.

In David Ricardo's Theory of Trade,_______________ Is Assumed to Be