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:
There is a missing part of the answer in all the options as there are three spaces to fill and only two part of the answers are provided in all the options.
Hence the correct answer would be ---
increase; normal; reinforces
which may be considered as answer option e). normal; reinforces where 'increase' is missing.
Explanation:
The utility-maximizing model is a model theory of a consumer which shows how consumers try to allocate their income money. It is believe that every customer is a rational being and try to get the optimized value for their money spent. Consumers' resources are limited so that their incomes are also limited. Consumers have budget constraint.
According to the Utility Maximization theory, every consumers try to decide to spend their incomes so that the last pie spent on a product yields an amount which is equal to the extra marginal utility.
Thus a utility-maximizing consumer, Jane who is spending his income on wallets and eyeglasses will increase the purchased of wallets, when the price of the wall decreases, if the wallets are considered a normal good and the income effect of Jane will reinforces the substitution effect.
Therefore the answer is ---
increase; normal; reinforces
Answer:
The Crusades were a series of religious wars initiated, supported, and sometimes directed by the Latin Church in the medieval period. The term refers especially to the Eastern Mediterranean campaigns in the period between 1095 and 1271 that had the objective of conquering the Holy Land from Islamic rule.
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The highest point above sea level is an elevation. The difference between the highest and lowest point in an area is a relief.
