The theory of comparative advantage was proposed by:
A)Adam Smith.
B)Karl Marx.
C)David Ricardo.
D)Eli Heckscher.

Question

Quizplus · Accepted Answer

The theory of comparative advantage was proposed by David Ricardo in his book "Principles of Political Economy and Taxation" in 1817. While Adam Smith is often associated with the theory of absolute advantage, which focuses on a country's ability to produce a particular good more efficiently than another country, Ricardo's theory of comparative advantage focuses on a country's ability to produce a good at a lower opportunity cost than another country.

The Theory of Comparative Advantage Was Proposed By