Ricardo's Theory of Comparative Advantage Suggests That Consumers in All

question 89

Multiple Choice

Ricardo's theory of comparative advantage suggests that consumers in all nations can consume more if there are

• A) trade restrictions on services only.
• B) no trade restrictions.
• C) severe trade restrictions.
• D) trade restrictions on manufactured goods only.
• E) restrictions on currencies.

---

Definitions:

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors using energy stored in batteries.

Motorcycles

Two-wheeled vehicles powered by an engine, designed for both transportation and recreation purposes.

Marginal Rate

The rate at which one quantity changes with respect to a small change in another quantity.

Transformation

The process of changing from one state or condition to another, often used to describe changes in economic structures or industries.