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Questions › CUET-PG › CUET-PG 2025 › Q64
4 marks, −1International Economics › Theories of international trade › Absolute and comparative advantageHardabout 1 min

CUET-PG 2025 Question 64: Theories of international trade

According to the law of comparative advantage, trade will not be beneficial for both countries if (A) one nation is less efficient than the other nation in the production of both commodities. (B) one nation has an absolute advantage with respect to the other nation in the production of both commodities. (C) the opportunity cost of producing both the commodities is the same in both countries. (D) the absolute disadvantage that one nation has with respect to other nation is the same in both commodities.

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Theories of international trade has come up 151 times in 6 exams since 2006.

What this question tests

This question is on Absolute and comparative advantage, part of Theories of international trade in International Economics.

Why countries trade: producing more cheaply in absolute terms, or at lower opportunity cost.

TestStop has 42 past-paper questions on this subtopic; the nearest in year are below.

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