Which of the following statements is true of the theory of absolute advantage?

A. Trade is beneficial if country does not have absolute advantage in all commodities

B. Trade is beneficial if ratio of labour used in production is less

C. Trade is beneficial only for a section of population

D. Trade leads to migration of people

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Yusra AneesLv10

11 Nov 2020

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Related questions

Which of the following statements is true about the theory of comparative advantage?

A. Countries gain from trade only if they have absolute advantage

B. Countries can gain from trade even if they have absolute advantage in all commodities

C. Comparative advantage was proposed by Adam Smith

D. Trade will lead to fall in welfare

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