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The theory of comparative advantage is credited to David Ricardo.
<h3>What is Ricardo's theory of comparative advantage?</h3>
In economics, a comparative advantage occurs when a country can produce a good or service at a lower opportunity cost than another country.
The theory of comparative advantage is attributed to political economist David Ricardo, who wrote the book Principles of Political Economy and Taxation (1817).
Comparative advantage is a key principle in international trade and forms the basis of why free trade is beneficial to countries.
Eg; Consider two countries (China and the UAE) that use labor as an input to produce two goods: wine and cloth.
In China, one hour of a worker’s labor can produce either 5 cloths or 10 wines.
In the UAE, one hour of a worker’s labor can produce either 20 cloths or 15 wines.
The UAE enjoys an absolute advantage in the production of cloth and wine.
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Answer:
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Answer:
The best option of the answer choices provided is Option 4. Hinduism established a rigid cast system, but it was formally abolished in the mid 20th century.
Explanation:
There are four main categories in the Hindu caste system - Shudras, Vaishyas, Kshatriyas, and Brahmins. The Hindu God of creation called Brahma was said to have created the groups. One of the most important Hindu texts, Manusmriti, dates to 1000 years before Christ, and it says that the caste system is the framework for order and regularity in Hindu society. Discrimination on the basis of caste was banned by law in 1948 in India, although unfortunately there is continued stigma and discriminatory practices to this day.
