The Theory of Absolute Advantage Is

question 45

Multiple Choice

The theory of absolute advantage is:

• A) The idea that free market forces should determine how much to trade with little government intervention.
• B) The economic advantage one nation enjoys that is absolutely superior to other nations.
• C) The idea that governments should actively protect domestic industries from imports and vigorously promote exports.
• D) The belief that held that the wealth of the world was fixed and that a nation that exported more and imported less would enjoy the net inflows of gold and silver and thus become richer.

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Definitions:

Ethical Dimension

Pertains to the moral aspects and considerations that influence conduct, ensuring actions and decisions support fair and just practices.