Question

Ricardian theory measures comparative cost in terms of ___
1. Money
2. Labour
3. Cost of all the inputs
4. Cost of raw material

Answer 1

Answer:

Option 2 : Labour

MARK ME AS BRAINLIEST !!

Answer 2

Introduction:

The Ricardian theory of comparative costs explains what commodities a nation would export and import, but it does not analyse the rate at which it will exchange its exports for imports.

Explanation:

The comparative cost principle asserts that (a) international commerce occurs between two nations when the comparative cost of manufacturing commodities differs, and (b) each country would specialise in producing the item in which it has a comparative advantage.

Therefore, all the options are correct.