The Theory of Comparative Advantage,advanced by __________,Is the Intellectual Basis

question 27

Multiple Choice

The theory of comparative advantage,advanced by __________,is the intellectual basis of the modern argument for unrestricted free trade.

• A) Michael Porter
• B) David Ricardo
• C) Bertil Ohlin
• D) Adam Smith
• E) Wassily Leontief

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input, holding all other inputs constant.

Number of Workers

The total count of individuals employed or available for employment within a business or economy.

Law of Diminishing Returns

The principle that as one factor of production is increased while others are held constant, the incremental gains in output will eventually decrease.

Marginal Output

The additional output that results from using one more unit of a particular input, holding all other inputs constant.