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.

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An agreement that is either unlawful in nature or made with the purpose of undertaking an illegal act, and thus, is not enforceable by law.

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Pertaining to contracts or agreements that are not yet fully performed or completed by all involved parties.

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