The Primary Flaw in the Theory of Absolute Advantage Is

Multiple Choice

The primary flaw in the theory of absolute advantage is that the theory ________.

A) confuses the acquisition of treasure with the acquisition of wealth
B) looks only at relative productivity differences rather than competitive differences
C) suggests that no trade will occur when one country has an absolute advantage in multiple products
D) incorporates the concept of opportunity cost in determining which goods a country should produce