WBCS.LIVE practice question

Theoretically trade between two countries takes place on account of—

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Difference in Costs
  2. Scarcity of Goods
  3. Comparative Differences in Costs
  4. Need for Exports

Correct answer and explanation

Correct answer: Comparative Differences in Costs