Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Business Studies Finance and Trade International Trade
The Ricardian theory of comparative advantage relies on which one of the following assumptions?
1
Production technologies in both countries exhibit diminishing return to scale
2
Factors of production can be easily and costlessly moved from one sector to the other as the country specialises through trade and there is a fixed supply of the factors of production
3
The underlying market structure driving production is based on imperfect competition
4
There is technical innovation and there are technological spillover