Question

STEM: Which of the following is correct?
A. Theory of comparative advantage was given by David Ricardo.
B. As per the theory of comparative advantage, it make sense for a country to specialize in production of these goods that it can produce more efficiently than others.
C. Theory of absolute advantage was given by David Hume.
D. As per the theory of absolute advantage, country should specialize in production of those goods for which they have an absolute advantage and then trade these goods for those produced by other countries.
E. Factor Endowment theory was given by Michael Porter.
Choose the correct answer from the options given below:

• A. A, B, D only
• B. A, B, E only
• C. B, D, E only
• D. A, B, C only

Answer 1

Answer: (A)

A, B, D only

Answer 2

The correct option is (A):A, B, D only