Economics · Ricardian Theory of Trade
Assertion (A): Even if one country has an absolute advantage in the production of all goods, international trade can still be mutually beneficial. Reason (R): Comparative advantage depends on opportunity cost differences between countries, not absolute productivity.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1A is false, but R is true
- 2A is true, but R is false
- 3Both A and R are true, but R is not the correct explanation of A
- 4Both A and R are true, and R is the correct explanation of A✓
Correct answer
Both A and R are true, and R is the correct explanation of A
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Economics?
Practice full-length Economics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Ricardian Theory of Trade MCQs →Want more practice questions on Ricardian Theory of Trade?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Ricardian Theory of Trade