Which of the Following Statements Is FALSE

question 5

Multiple Choice

Which of the following statements is FALSE?

• A)Comparative advantage is the principle upon which trade patterns are based.
• B)Opportunity cost measures the real cost to a country of producing a certain product.
• C)The gains from trade are the result of differences in opportunity cost and comparative advantage.
• D)A country that possesses an absolute advantage will always have a comparative advantage.

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Definitions:

Denitrifying Bacteria

Bacteria involved in the nitrogen cycle, converting nitrates in soil into nitrogen gas, thereby reducing nitrogen availability to plants.

Nitrate

A polyatomic ion with the chemical formula NO3− or a compound containing this ion; important in the nitrogen cycle and used in fertilizers.

Nitrogen Gas

A diatomic, colorless, odorless, and tasteless gas that makes up about 78% of the Earth's atmosphere.

Food Chain

A linear sequence of organisms through which nutrients and energy pass as one organism eats another.