The theory of absolute advantage was propounded by

Step 1: Analyze the question The question asks who proposed the theory of absolute advantage in international trade.

Step 2: Explain the concept Absolute advantage is the ability of a country (or producer) to produce a good using fewer resources than another country. It means a country is more efficient in producing that good.

• Adam Smith introduced this idea in his 1776 book The Wealth of Nations. He argued that countries should specialize in producing goods they can make most efficiently and then trade for the rest.
• David Ricardo later developed the theory of comparative advantage (1817), which is a different concept. It says that even if a country has no absolute advantage, trade can still benefit it if it specializes where its opportunity cost is lowest.

Step 3: Check the other options

• C. Irving Fisher is known for the quantity theory of money (the equation of exchange) and for work on interest rates.
• D. JB Kynes (John Maynard Keynes) is known for Keynesian economics, which covers aggregate demand and government intervention.
• E. Thomas Malthus is known for his theory of population growth, which says population grows faster than food supply.

Step 4: Answer The theory of absolute advantage was propounded by Adam Smith, which is option A.

Exam tip: Remember "Smith = Simple/Absolute" and "Ricardo = Relative (comparative)". Smith goes with Absolute advantage, Ricardo with Comparative advantage. NECO and JAMB often test this pair.