According to Ricardo's theory of comparative advantage, countries shall not produce a good, even if they have an absolute advantage in its production, if they do not produce it efficiently.

Question

Quizplus · Accepted Answer

According to Ricardo's theory of comparative advantage, it makes sense for a country to specialize in the production of those goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries even if the country has an absolute advantage over its production.

According to Ricardo's Theory of Comparative Advantage, Countries Shall Not