JAMB - Economics (2009 - No. 30)
According to the theory of comparative advantage specialization will result in
labour-intensive method of production
capital-intensive method of production
efficient allocation of resources
efficient distribution of output
Explicació
The theory of comparative advantage simply explains what a country would do best while also giving up the least.
It is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. With this, the economy will enjoy resource allocation optimization and efficiency.