David Ricardo was a strong advocate for free trade and suggested that countries would benefit from trade. He believed in the concept of comparative advantage, where countries should specialize in producing goods that they are most efficient in producing, and then trade with other countries for the goods they cannot produce as efficiently.

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David Ricardo

Question 173

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 of the value of those in use.

Correct Answer: