Even If One Country Was Most Efficient in the Production

Multiple Choice

Even if one country was most efficient in the production of two products,it must be relatively more efficient in the production of one good. It should then specialize in the production and export of that good in exchange for the importation of the other goods. This describes the:

A) Theory of comparative advantage
B) Theory of absolute advantage
C) Theory of factor proportions
D) Leontief Paradox
E) Product cycle theory