Major assumptions of the theory of Comparitive advantage are | Faculties

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Shiva Ram

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📊 International Economics

Q. Major assumptions of the theory of Comparitive advantage are

(A) there are two countries and two commodities and the countries have absolute advantage in both commodities .
(B) labour is the only factor of production and labour is homogeneous, that means each unit of labour produces same level of output. value of a commodity is measured in terms of its labour content
(C) labour is perfectly mobile within the country but perfectly immobile between the countries. it means that workers are free to move between industries within the nation but migration to other countries is impossible.
(D) all the above.

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✅ Correct Answer: (D) all the above.

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