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David Ricardo's theory of comparative advantage says that: Multiple Choice free international trade increases global e...

David Ricardo's theory of comparative advantage says that:

Multiple Choice

  • free international trade increases global economic welfare.

  • free trade is a necessary, but not a sufficient, condition for mercantilism.

  • All of the options.

  • the benefits of free trade is a short-run phenomenon that will inevitably be reversed by political rent-seeking behavior.

  • international trade is a zero-sum game in which one trading partner gains the expense of another trading partner.

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Answer #1

david Ricardo's theory of comparative advantage says that:-

a) free international trade increases global economic welfare.

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