The concept of comparative advantage is based on:
A) absolute labour productivity.
B) relative labour costs.
C) dollar prices of labour.
D) relative opportunity costs.

Question

Quizplus · Accepted Answer

The concept of comparative advantage is based on relative opportunity costs, which involves comparing the opportunity cost of producing a good or service between two countries. It is not based on absolute labour productivity, relative labour costs, or dollar prices of labour.

The Concept of Comparative Advantage Is Based On