The Concept of Absolute Comparative Advantage's Origins Lie In

question 72

Multiple Choice

The concept of absolute comparative advantage's origins lie in:

• A) Adam Smith's work of 1776.
• B) David Ricardo's work of 1776.
• C) The Wealth of Nations book, published in 1887.
• D) On the Principles of Political Economy and Taxation book, published in 1817.

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Definitions:

Variable Costs

are expenses that change in proportion to the activity of a business, such as sales volumes, including costs of goods sold and direct labor costs.

Selling Price

The actual price at which a product or service is sold to customers.

Labor Cost

The total amount of financial compensation, benefits, and taxes companies must pay for their employees' work.

Raising Prices

The act of increasing the cost at which goods or services are sold to consumers or other businesses.