Match the items of List-I with the items of List-II and indicate the correct answer.
| List-I | List-II |
| a. Absolute cost advantage theory | 1. The empirical evidence based on US export of labour-intensive goods challenging the factor endowment theory. |
| b. Comparative cost advantage theory | 2. A country with a direct cost advantage in the production of a product on account of greater efficiency. |
| c. Factor endowment theory | 3. A country should produce and export a commodity that primarily involves a factor of production in abundance within the country. |
| d. Leontief paradox | 4. A country should specialize in the production and export of a commodity in which it possesses the greatest relative advantage. |
A. a-2, b-4, c-3, d-1
B. a-2, b-4, c-1, d-3
C. a-2, b-1, c-3, d-4
D. a-1, b-4, c-3, d-2
Answer: Option A

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