David Ricardo would be MOST likely to agree with which one of the following statements?

Question

Quizplus · Accepted Answer

David Ricardo was a proponent of free trade and believed that it led to overall benefits for both trading countries. He argued that specialization and comparative advantage allowed for increased efficiency and lower costs, ultimately leading to increased production and consumption for all parties involved. High tariffs, as advocated in option A, would go against his beliefs. Option C is incorrect as Ricardo believed in trading based on comparative advantage, not absolute advantage. Option D is the correct concept, but the wording is incorrect – Ricardo would say that if you have a comparative advantage in one good, you should specialize in producing that good and trade with other countries to obtain goods in which you have a comparative disadvantage.

David Ricardo Would Be MOST Likely to Agree with Which