Which of the Following Established the Neighbour Principle

question 11

Multiple Choice

Which of the following established the neighbour principle?

• A) Donoghue v. Stevenson [1932] A.C. 562 (H.L.)
• B) Hercules Managements Ltd. v. Ernst & Young [1997] 2 S.C.R. 165
• C) Kauffman v. Toronto Transit Commission [1960] S.C.R. 251
• D) Donoghue v. Simpson [1932] A.C. 562 (H.L.)

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Definitions:

Comparative Advantage

A principle that states a country should produce and export goods for which it has a lower opportunity cost compared to other countries.

Allocate Resources

The process of distributing available resources among various projects or business units.

Maximize Output

Involves strategies or actions by a firm to produce as much as possible, often while considering constraints like resources, technology, and market demand.

Comparative Advantage

The capability to produce a particular good or service more efficiently than other producers, allowing for trade benefits.