The theory of absolute advantage measures a nation's wealth by determining the ________.
A) amount of gold it has on reserve
B) quantity of minerals it has on reserve
C) total trade volume in the country
D) living standards of its people

Question

Quizplus · Accepted Answer

The theory of absolute advantage measures a nation's wealth by determining the living standards of its people. This theory suggests that a country should specialize in producing goods that it can produce efficiently using fewer resources than other countries, which leads to increased productivity and higher living standards for its people.

The Theory of Absolute Advantage Measures a Nation's Wealth by Determining