Which of the Following Statements About Comparative Advantage Is Not

question 129

Multiple Choice

Which of the following statements about comparative advantage is not true?

• A)Comparative advantage is determined by which person or group of persons can produce a given quantity of a good using the fewest resources.
• B)The principle of comparative advantage applies to countries as well as to individuals.
• C)Economists use the principle of comparative advantage to emphasize the potential benefits of free trade.
• D)A country may have a comparative advantage in producing a good, even though it lacks an absolute advantage in producing that good.

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Definitions:

Settlement Agreement

A legal agreement that resolves a dispute between two parties without the need for a trial.

No-Action Agreement

An understanding or assurance from a regulatory authority indicating that no enforcement action will be taken, often despite potential violations.

Payoff

A final payment that settles a debt or an investment, or the bribe to secure someone's compliance or silence.

ADR

Alternative Dispute Resolution; methods for resolving disputes outside of court, including arbitration and mediation.