Which of the Following Is True of the Absolute Advantage

question 49

Multiple Choice

Which of the following is true of the absolute advantage theory of international trade? 

• A) It emphasizes relative advantage in one economic activity that one nation enjoys in comparison with other nations. 
• B) It divides the countries of the world into three categories based on innovation. 
• C) It advocates extensive government intervention in international trade. 
• D) It was the first theory that advocated free trade.

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