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The Best Explanation of the Gains from Trade That David

question 47

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The best explanation of the gains from trade that David Ricardo could provide was to describe only the outer limits within which the equilibrium terms of trade would fall.This is because Ricardo's theory did not recognize how market prices are influenced by:


Definitions:

Belief Perseverance

The tendency to maintain one's belief even after it has been discredited by new evidence.

Additional Evidence

Supplementary information or data that supports or clarifies an argument, claim, or hypothesis.

Belief Perseverance

A cognitive phenomenon where individuals stick to their initial beliefs even when faced with new, contradictory evidence.

Unanimous Verdict

A legal decision where all jurors agree on the verdict in a court case.

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