Question

Match the following:

1. Comparative Cost Theory: A. J.S.Mill

2. Opportunity Cost :- B. G. Herberler

3. Doctrine of reciprocal demand :- C. David

Ricardo


1-C,2-B,3-A
1-B,2-A,3-C
1-C,2-B.3-A
1-A,2-B, 3-C​

Answer 1

Answer:

....................

Answer 2

The correct answer to this question is - 1-C, 2-B, 3-A.

Explanation:

1. Comparative Cost Theory  - David Ricardo

• In 1817, David Ricardo published the theory of comparative cost (previously known as theory of comparative advantage) in his book On the Principles of Political Economy and Taxation.  

• The comparative cost theory describes how, under free trade, an agent will generate more of and consume less of a product for which they possess a comparative advantage.

2. Opportunity Cost  - B. G. Herberler

• In 1936, B. G. Herberler described the opportunity cost theory, the cost of an article is the amount of a second article that must be given up to issue just enough resources to yield one additional unit of the first article.  

3. Doctrine of Reciprocal Demand  - J. S. Mill

• According to J. S. Mill, the actual ratio at which goods are transacted between two countries depends critically upon the elasticity and strength of each country's demand for the product of the other country or the reciprocal demand.