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:

Litigation

The process of taking legal action or resolving disputes in court.

Costly

Pertaining to a high expenditure or the requiring of significant resources, either financially or in terms of effort.

Counterclaim

A counterclaim is a claim made by a defendant in a lawsuit against the plaintiff, essentially acting as a lawsuit within a lawsuit to seek some form of relief or damages.

Allegations

Claims or accusations made without proof, often seen in legal contexts before evidence is presented.