Which of the Following Statements About Comparative Advantage Is True

question 46

Multiple Choice

Which of the following statements about comparative advantage is true?

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

---

Definitions:

Simple Present Tense Verbs

Verbs that describe actions happening in the present time, used to express habitual or general truths.

Nouns

Words that identify people, places, things, or ideas.

Keywords

Important words or phrases used in search engines and databases to find relevant information or in content to improve its findability.

External Factor

An influence, condition, or variable that originates outside of an organization and can affect its performance and strategies.