Q186
Who stated explicitly for the first time, the Law of Comparative Costs?
A.
David Ricardo
AnswerB.
Adam Smith
C.
James Mill
D.
Thomas Mun
Answer: Option A
Solution
Answer: Option A
Solution:
David Ricardo stated explicitly for the first time, the Law of Comparative Costs. Absolute advantage refers to the uncontested superiority of a country to produce a particular good better. Comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.