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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Definitions:

Parent Ltd Indirect Interest

An ownership interest held by a parent company in a subsidiary through another subsidiary rather than directly.

Multiple Consolidation

The process of integrating financial statements from multiple subsidiaries into one aggregated set of financial statements for the parent company.

Ownership Interests

The rights and shares held by an entity or individual in another company, evidencing an ownership stake.