Question

Ricardian theory measures comparative cost in terms of .

(man days, money, input costs, all of the above)​

Answer 1

Answer:

ALL OF THE ABOVE

is the required answer

Answer 2

All of the above

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 specialize in producing the item in which it has a comparative advantage.

• The following assumptions underpin the Ricardian notion of comparative advantage:

• (1) Assume there are just two countries, A and B.
• (2) They both manufacture the same two goods, X and Y.
• (3) Their tastes are comparable.
• (4) The only factor of production is labor.