According to the principle of _______, even someone with an absolute advantage in producing a good may be better off trading for that good from someone else.

Question

Quizplus · Accepted Answer

The principle described in the statement is that of comparative advantage. Absolute advantage only measures the efficiency of production, but comparative advantage takes into account the opportunity cost of producing one good over another, making it possible for someone with lower efficiency to still benefit from trade. Negative liberty and equality are not directly related to the concept of trade or comparative advantage.

According to the Principle of _______, Even Someone with an Absolute