Comparative Advantage Has Mixed Results When It Comes to Predicting

question 47

Multiple Choice

Comparative advantage has mixed results when it comes to predicting a country's trade patterns.Which of the following is FALSE?

• A)There are many potential products an economy might export that use the same comparative advantage.
• B)A large share of international trade is not based on comparative advantage.
• C)Comparative advantage has proven completely incapable of predicting trade.
• D)Comparative advantage is a dynamic concept, which means that the spread of technology, improvement in skills, and learning-by-doing may alter a country's comparative advantage over time.

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