Which of the Following Statements Is False

question 5

Multiple Choice

Which of the following statements is false?

• A) Owners of factors of production used in industries in which a nation lacks a comparative advantage may be hurt by free trade.
• B) Trade based on comparative advantage enables a country to produce outside its production possibilities curve.
• C) Trade based on comparative advantage enables a country to consume outside its production possibilities curve.
• D) Generally, trade between two countries tends to be mutually beneficial.

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