A Country with a Comparative Advantage in Producing One Good

question 145

True/False

A country with a comparative advantage in producing one good may lose this advantage if too many resources are shifted to producing this good as a result; the shifting of resources would thereby increase production costs because some ill-suited resources would thus be used to produce the good.

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Definitions:

Remedies

Legal means through which a right is enforced or the violation of a right is prevented, redressed, or compensated.

Defect

A flaw or imperfection in a product or system that causes it to be unsafe, ineffective, or fails to meet specified criteria.

Consigned Goods

Items that are given to a third party (consignee) to sell, where the original owner (consignor) retains ownership until the goods are sold.

Possession

The actual holding or control of property, whether owned or not.