David Ricardo's theory of comparative advantage suggested that countries would benefit from specializing in producing goods that they could produce most efficiently and trading with other countries for goods that they could not produce as efficiently. This would lead to increased economic growth for all countries involved in the trade.

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David Ricardo

Question 79

Multiple Choice

David Ricardo

A) suggested that increasing wages for workers would increase their consumption and lead to economic growth.
B) wanted to protect textile markets in England.
C) suggested that countries would benefit from trade.
D) suggested that goods were exchanged based on the value of those in use.

Correct Answer: