Economics · International Trade Theories
The Comparative Advantage Theory (CAT) is a trade theory that describes the basis of two nations engaging in trade. Which one among the following statements regarding the theory is not correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The two nations that engage in trade can gain from specializing in the commodity in which they have a comparative advantage.
- 2According to the CAT, the nation which does not have absolute advantage in any goods cannot benefit from trade.✓
- 3The CAT is explained in the book titled 'On the Principles of Political Economy and Taxation' first published in 1817.
- 4David Ricardo was the author of the CAT.
Correct answer
According to the CAT, the nation which does not have absolute advantage in any goods cannot benefit from trade.
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
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice International Trade Theories MCQs →Want more practice questions on International Trade Theories?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · International Trade Theories