Comparative Advantage Theory Was First Presented By

question 59

Multiple Choice

Comparative advantage theory was first presented by:

• A)David Ricardo.
• B)John Stuart Mill.
• C)Michael Porter.
• D)Milton Friedman.
• E)Adam Smith.

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Definitions:

Profit Margin

A financial ratio that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in generating profit.

Operating Profit Margin

A profitability ratio calculated as operating income divided by revenue, indicating the percentage of revenue that is left over after paying for variable costs of production.

Cost of Goods Sold

Expenses directly incurred from the production of a company's sold goods, involving the cost of labor and materials.

General and Administrative Costs

Expenses related to the day-to-day operations of a business that are not directly linked to production or sales.