Both Smith and Ricardo contended that the pattern of world trade is determined solely by supply conditions. Explain. How does the comparative-cost concept relate to a nation’s production...

Both Smith and Ricardo contended that the

pattern of world trade is determined solely by

supply conditions. Explain.

How does the comparative-cost concept relate

to a nation’s production possibilities schedule?

Illustrate how differently shaped production

possibilities schedules give rise to different

opportunity costs.