Which of the following observations is t of the principle of comparative advantage?
A) It arises from the absolute cost advantage.
B) It helps determine most efficient patterns of production.
C) It was advanced by Adam Smith.
D) It means producing a good using smaller quantities of resources than others.

Question

Quizplus · Accepted Answer

The principle of comparative advantage helps determine the most efficient patterns of production by showing which goods a country or individual should specialize in producing based on their opportunity costs compared to other countries or individuals. The other choices are either not true or not directly related to the principle of comparative advantage.

Which of the Following Observations Is T of the Principle