David Ricardo's Theory of Comparative Advantage Has the Following Policy

question 15

Multiple Choice

David Ricardo's theory of comparative advantage has the following policy implication:

• A) Liberalization of international trade will enhance the welfare of the world's citizens
• B) International trade is a zero-sum game
• C) One country will benefit from trade at the expense of another country
• D) Restriction of international trade will enhance the welfare of the world's citizens

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Definitions:

Contingency Approach

A management theory that suggests the most appropriate management style or approach depends on the specific aspects of the situation at hand.

Chaos Theory

A branch of mathematics focusing on the behavior of dynamical systems that are highly sensitive to initial conditions, often leading to unpredictable and complex outcomes.

Purely Situational Approach

A viewpoint emphasizing that behavior or decisions should be based solely on the specifics of the situation, rather than on general principles or theories.

Theory Y

Theory Y suggests a management style that assumes employees are self-motivated, seek responsibility, and can solve work problems creatively, advocating for a participative management approach.