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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Definitions:

Agoraphobia

A type of anxiety disorder characterized by an intense fear of being in places or situations from which escape might be difficult or embarrassing, or where help may not be available in case of a panic attack.

Dissociative Disorders

Mental disorders that involve experiencing a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Personality

The unique and relatively stable ways in which people think, feel, and behave.

Schizophrenic

A term related to schizophrenia, a mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.