Which of the following assumptions was made in the original theories of absolute and comparative advantage?
A)Specialized labor seeks efficiency.
B)Labor resources are fully employed.
C)Countries pursue objectives other than economic efficiency.
D)Production networks enable countries to concentrate on particular functions.

Question

Quizplus · Accepted Answer

Both theories assume that labor resources are fully employed, meaning there is no unemployment or underemployment in the economy. This assumption allows for the efficient allocation of resources towards production, which is a key concept in both theories. The other choices are unrelated to the assumptions of absolute and comparative advantage.

Which of the Following Assumptions Was Made in the Original