Question
What distinguishes comparative advantage from absolute advantage in international trade? (1 point)
• It operates on the principle of static national wealth.
• It takes into account the unit of input per good.
• It takes into account opportunity costs in production.
• It is the only trade theory in which both trading partners can benefit.
• It operates on the principle of static national wealth.
• It takes into account the unit of input per good.
• It takes into account opportunity costs in production.
• It is the only trade theory in which both trading partners can benefit.
Answers
GPT 3.5
• It takes into account opportunity costs in production.