A. The law of comparative advantage was propounded by David Ricardo
B. The law stresses the importance of relative efficiency
C. In order to specialize, a country must have absolute advantage
D. The law is based on opportunity cost principle
E. The principle if followed should increase total world output

Correct Answer:

Option C – In order to specialize, a country must have absolute advantage

SEE ALSO  In order to control inflation, the government should?

Copyright warnings! Do not copy.