The Theory of Comparative Advantage Was Proposed by ________

question 73

Multiple Choice

The theory of comparative advantage was proposed by ________.

• A) David Ricardo
• B) Adam Smith
• C) Bertil Ohlin
• D) Raymond Vernon

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Definitions:

Operating Assets

Assets used by a company to generate revenue, typically including property, plant, and equipment, but excluding investments and inventories.

Net Operating Income

The profit generated from a company's everyday business operations, indicating how much revenue exceeds both operating costs and overhead.

Residual Income

The income that remains after deducting all required expenses and cost of capital from operating income.

Investment Centers

Segments within a company for which managers have responsibility over cost, revenue, and investment decisions.