The theory of …………… was propounded by ……………

JAMB Economics 2023 183 views
Source: JAMB · 2023

The theory of …………… was propounded by …………….

  1. Absolute advantage; David Ricardo
  2. Absolute advantage; Adam Smith ✓
  3. Comparative advantage; Adam Smith
  4. Comparative advantage; Mercantilists
Explanation

The theory of absolute advantage was put forward by Adam Smith in The Wealth of Nations (1776). It says a country should produce what it can make with fewer resources than others, then trade.

David Ricardo developed the theory of comparative advantage.

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