Which of the Following Factors Is Taken into Consideration by David

question 141

Multiple Choice

Which of the following factors is taken into consideration by David Ricardo's theory of comparative advantage in order to explain the pattern of international trade?

• A) Absolute advantage of a country with reference to natural resources
• B) The proportions in which the factors of production are available
• C) International differences in labor productivity
• D) Specialization in the production of particular products
• E) The ability of firms to capture first mover advantages

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Definitions:

Natural Logarithm

A mathematical function denoted as ln(x), representing the time needed to reach a certain level of growth at a constant growth rate of 100%.

Utility Function

A mathematical model that represents consumer preferences by assigning a level of utility, or satisfaction, to different bundles of goods or services.

Probability

An indicator of the probability of an event happening, represented by a value ranging from 0 to 1.

Wealth

The abundance of valuable resources or material possessions, or the control of such assets.