The Basis for Trade Is Explained by the Principle of Absolute

question 68

True/False

The basis for trade is explained by the principle of absolute advantage according to David Ricardo and the principle of comparative advantage according to Adam Smith.

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Definitions:

Ethical Egoism

A moral philosophy arguing that individuals should act in their own self-interest and that this is the only moral duty.

Altruistic Explanations

Theories or reasons provided for actions taken for the benefit of others, often without personal gain and sometimes at a cost to oneself.

Stoicism

A classical Greek philosophical approach that emphasizes cultivating self-discipline and resilience to conquer harmful feelings.

Virtue Ethics

An ethical theory that emphasizes the role of character and virtue in moral philosophy rather than either doing one’s duty or acting to bring about good consequences.