Complete the lists below to show the assumptions and limitations of the Theory of Comparative Advantage:$$​Assumptions:1. Average costs are   .2. There are no trade   .3. There are no    costs.$$​Limitations:1. Specialisation can cause average costs to increase due to    of scale.2. There are often trade barriers such as   .3. There are real life    costs when trading.

The theory of comparative advantage suggests that countries should specialize in producing goods or services in which they have:Question 45Answera.Lower opportunity costsb.Higher opportunity costsc.Equal opportunity costsd.No opportunity costs

Complete the statement below.The first limitation of the theory of comparative advantage is that increased    might increase output and lead to rising    costs caused by    of scale.

The theory of comparative advantage demonstrates that even if a country is less efficient than another in producing all goods, it can still benefit from trade by specializing in the production of the good in which it has:  A. The highest absolute advantage  B. The lowest opportunity cost  C. The highest total production  D. The lowest absolute cost

Which of the following conditions signify Comparative Advantage?a.When a country can produce goods at low cost.b.When a country can produce goods at low taxes.c.When a country can produce goods at low opportunity cost.d.When a country can transport goods at low cost.

What is the first advantage of specialisation and trade? Complete the statement below.The Theory of Comparative Advantage says that specialisation and trade leads to an increase in global    which will increase living