Both absolute and comparative advantage theories assume that ________ is the only resource used in the production process.
A) land
B) labor
C) capital
D) equipment

Question

Quizplus · Accepted Answer

Both absolute and comparative advantage theories center around the assumption that labor is the only resource used in the production process. The absolute advantage theory emphasizes the overall efficiency of a country in producing a certain good or service, while the comparative advantage theory emphasizes the relative efficiency of a country in producing a certain good or service compared to other countries. In both theories, labor is assumed to be the primary resource utilized in production.

Both Absolute and Comparative Advantage Theories Assume That ________ Is