Which of the Following Is Correct About Comparative Advantage

question 10

Multiple Choice

Which of the following is correct about comparative advantage?

• A) Some countries will have a comparative advantage in everything.
• B) Having a comparative advantage without an absolute advantage is impossible.
• C) A comparative advantage in a good means that the country can produce more of the good than any other country.
• D) A country has a comparative advantage in the production of a good if it can produce the good at lower opportunity cost than any other country.
• E) None of the above answers is correct.

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Definitions:

Target Markets

Specific groups of potential customers at whom a company aims its products and marketing efforts based on shared characteristics.

Competitors

Businesses or individuals in the same industry that vie for the same customer base or market share.

Exchange

The act of trading goods, services, or resources between parties, typically in a way that benefits both sides.

Service

Intangible activities or benefits provided to consumers, including assistance, experience, or access, that satisfy a need or want.