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By CSS 2025 Economics Past Paper Mcqs CSS 2025 Past Papers Mcqs CSS Economics Past Paper Mcqs CSS Past Papers Mcqs Economics Mcqs No Comments

The doctrine of comparative advantage states that there are gains from international trade:

A. Only if both comparative and absolute advantage are present in both countries.
B. If opportunity costs are the same in the countries involved.
C. Only if there are economies of scale available.
D. If countries specialize in the production of goods in which they are relatively more efficient.

Submitted by: Areesha Khan

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Comparative advantage suggests that even if a country does not have an absolute advantage, it should produce goods where it has the lowest opportunity cost.

Related Mcqs:

  1. The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?
    A. Adam Smith B. David Ricardo C. David Smith D. Adam Ricardo...
  2. Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?
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  3. If countries were to trade along the lines of comparative advantage ?
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  4. The gains from international trade are closely related to ?
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  6. The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
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  7. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
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  8. Trade based on absolute advantage was presented by:
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  9. Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?
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The correct answer to the question: "The doctrine of comparative advantage states that there are gains from international trade:" is "If countries specialize in the production of goods in which they are relatively more efficient.".

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