Mahatma Ghandi exhorted his followers in India to promote economic welfare by decreasing imports. This approach
A) makes no sense.
B) makes no economic sense.
C) is consistent with the the Ricardian model of comparative advantage.
D) is not consistent with the Ricardian model of comparative advantage.
E) guarantees benefits for Indian workers.

Question

Quizplus · Accepted Answer

The approach of decreasing imports to promote economic welfare goes against the principles of the Ricardian model of comparative advantage, which states that countries should specialize in the production of goods and services in which they have a comparative advantage and trade with other countries for goods and services that they cannot produce efficiently. By restricting imports, India would be missing out on the benefits of international trade and reducing consumer choice, which could ultimately harm its economy.

Mahatma Ghandi Exhorted His Followers in India to Promote Economic