passwella.
Menu

WAEC Economics 1988 Question 27

Question 27

International Trade

Which of these does not relate to the law of comparative advantage?

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

Answer: C (In order to specialize, a country must have absolute advantage)

Explanation

Comparative advantage shows that trade pays even when a country has no absolute advantage, so C contradicts the law.