Which of the Following Statements About Comparative Advantage Are True

question 120

Multiple Choice

Which of the following statements about comparative advantage are true?
1) A country's pattern of comparative advantage depends partly upon the relative abundance of different types of resources in its endowment of factors.
2) Trade allows small countries to reap economies of scale through specialization.
3) Climate affects a country's pattern of comparative advantage.

• A)1 and 2
• B)2 and 3
• C)1,2,and 3
• D)1 only
• E)2 only

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Market Value

The current price at which an asset or service can be bought or sold in a vibrant market.

Financial Position

A snapshot of the resources, liabilities, and equity of an entity at a specific point in time, illustrating its economic standing.

Cash Flow From Assets

The total amount of money being transferred in and out of a company's operations, investments, and financing, specifically relating to its assets.

Cash Flow To Creditors

The amount of cash companies pay to their creditors and lenders, including payments for interest and principal on debt.