The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-The oldest theory of comparative advantage is based on:

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-The oldest theory of comparative advantage is based on:

Quizplus · Accepted Answer

The oldest theory of comparative advantage is based on productivity differences, meaning that countries specialize in producing goods where they have a comparative advantage due to superior productivity or technology. This theory was proposed by David Ricardo in the early 19th century and is still widely accepted today. Factors abundance, product life cycles, preferences, and human skills are not directly related to the theory of comparative advantage.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity