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Topic Comparative advantage
Asked 2 times across 2 UPSC exams over 11 years (2014–2025), peaking in 2025.
Key insights
- Most tested in CAPF — 1 of 2 PYQs
- Most asked in 2025
- Recurs across 2 years (2014–2025)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CDS 2014 → CAPF 2025
How the concept evolved
Long-running — most appearances (1 of 2) predate 2016, and it still returns.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CAPF2025
The comparative advantage theory (CAT) is a trade theory that describes the basis of two nations engaging in trade. Which one among the following statements regarding the theory is not correct?
- A David Ricardo was the author of the CAT.
- B The CAT is explained in the book titled On the Principles of Political Economy and Taxation that was first published in 1817.
- C According to the CAT, the nation which does not have absolute advantage in any goods cannot benefit from trade.
- D The two nations that engage in trade can gain from specializing in the commodity in which they have a comparative advantage.
Answer key not yet available (pending official release)
Economy › External Sector & Trade
CDS2014
Which of the following theories form the basis of international trade?
- Absolute cost difference,
- Comparative cost difference,
- Opportunity cost
Select the correct answer using the code given below:
- A 1 only
- B 2 only
- C 1 and 2 only
- D 1, 2 and 3 ✓
✓ Correct answer: (D)
Economy › External Sector & Trade
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