Which of the Following Statements About Comparative Advantage Is True

question 21

Multiple Choice

Which of the following statements about comparative advantage is true?

• A)A country with a rising price level will lose any existing comparative advantage.
• B)Comparative advantage is based solely on differences in climate.
• C)To have a comparative advantage a country must also have an absolute advantage.
• D)Comparative advantage for certain products may be acquired by deliberate domestic government policy.
• E)Comparative advantage is based solely on differences in factor endowments.

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