Which of these does not relate to the law of comparative advantage?

Assessment: WAEC SSCE - Economics - 1988 (Objective) Subject: Economics

Question 1 Report

Which of these does not relate to the law of comparative advantage?
Answer Details
The option that does not relate to the law of comparative advantage is "In order to specialize, a country must have absolute advantage". Explanation: The law of comparative advantage states that countries should specialize in producing goods and services that they can produce at a lower opportunity cost than other countries. It does not require a country to have an absolute advantage in the production of any good or service. In fact, a country may have a comparative advantage in producing a good even if it is less efficient in producing that good than other countries. Therefore, the statement that "In order to specialize, a country must have absolute advantage" is incorrect as a country can specialize in producing goods and services based on their comparative advantage even if they don't have an absolute advantage.

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