According to the Theory of Comparative Advantage

question 34

Multiple Choice

According to the theory of comparative advantage

• A) a nation should produce the goods for which its absolute disadvantage is less.
• B) a nation can gain from trade if it is equally inefficient in producing two goods.
• C) a nation must have an absolute advantage in at least one good to gain from trade.
• D) a nation should strive to produce trade surpluses to acquire supplies of precious metals.
• E) a nation should produce goods that are the most technologically advanced.

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