According to Ricardo

question 172

Multiple Choice

According to Ricardo:

• A) all countries can gain from trade if they export goods for which they have an absolute advantage.
• B) one country can gain from trade only at the expense of another country.
• C) all countries can gain from trade if they export goods for which they have a comparative advantage.
• D) all countries lose from international trade.

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Definitions:

Profitability Index

A calculation that measures the relative profitability of an investment, determined by dividing the present value of future cash flows by the initial investment cost.

Time Value

The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Money

A medium of exchange that is widely accepted in transactions for goods and services and the repayment of debts.