Which of the following theories form the basis of international trade?
1Absolute cost difference
2Comparative cost difference
3Opportunity cost
Select the correct answer using the codes given below:

Question

Which of the following theories form the basis of international trade?
1. Absolute cost difference
2. Comparative cost difference
3. Opportunity cost
Select the correct answer using the codes given below:

Accepted Answer

(D) 1, 2 and 3

Answer

(A) Only 1

Answer

(B) 1 and 2

Answer

(C) Only 2