Palladia specializes in the production of beef and produces beef more efficiently than any other country. It buys wheat, which it produces less efficiently than beef, from Rhodia, even though it produces wheat more efficiently than Rhodia
Which of the following theories of international trade supports Palladia's decision to buy wheat from Rhodia?
A. The Samuelson critique
B. Mercantilism
C. Ricardo's theory of comparative advantage
D. Adam Smith's theory of absolute advantage
E. The Leontief paradox
C
Business
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When a previously declared dividend is paid, which of the following occurs?
A) assets increase B) stockholders' equity increases C) liabilities decrease D) assets remain unchanged
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