The idea of comparative advantage is associated with which economist?

The idea of comparative advantage is associated with which economist?

• A. Adam Smith
• B. David Ricardo
• C. Carl Menger
• D. Karl Marx

Answer: (B)

Comparative advantage is the idea that gains from trade come from differences in relative efficiency, so each country should specialize where its opportunity costs are lowest and then trade. David Ricardo popularized this concept, showing that even if one country is less productive in every good, there can still be mutual benefits from trade because the relative costs differ between countries. This contrasts with absolute advantage, associated with Adam Smith, which focuses on who can produce more with the same resources. The other two economists are linked to different ideas—Carl Menger with marginal utility and price theory, and Karl Marx with the labor theory of value—so the concept in question is tied to David Ricardo.

Comparative advantage is the idea that gains from trade come from differences in relative efficiency, so each country should specialize where its opportunity costs are lowest and then trade. David Ricardo popularized this concept, showing that even if one country is less productive in every good, there can still be mutual benefits from trade because the relative costs differ between countries. This contrasts with absolute advantage, associated with Adam Smith, which focuses on who can produce more with the same resources. The other two economists are linked to different ideas—Carl Menger with marginal utility and price theory, and Karl Marx with the labor theory of value—so the concept in question is tied to David Ricardo.