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6.1.4 limitations of the theories of absolute and comparative advantage

What core insight does the theory of comparative advantage capture?

A

Exchange rates drive the pattern of international trade.

B

Opportunity cost drives the pattern of international trade.

C

Absolute productivity drives the pattern of international trade.

D

Consumer preferences drive the pattern of international trade.

6.1.4 limitations of the theories of absolute and comparative advantage Flashcards

  1. Intl A Level
  2. /Economics
  3. /6.1.4 limitations of the theories of absolute and comparative advantage

24 flashcards on CIE Intl A Level Economics 6.1.4 limitations of the theories of absolute and comparative advantage: the key terms and definitions you need to recall.