According to the theory of comparative advantage specialization will result in
ECONOMICSJAMB 2009
According to the theory of comparative advantage specialization will result in
- A. labour-intensive method of production
- B. capital-intensive method of production
- C. efficient allocation of resources
- D. efficient distribution of output
Correct Answer: C. efficient allocation of resources
Explanation
The theory of comparative advantage simply explains what a country would do best while also giving up the least. It is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. With this, the economy will enjoy resource allocation optimization and efficiency.
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