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:

Implies Offers

Suggesting or indicating a proposal or opportunity without explicitly stating it.

Marketing

The process of promoting, selling, and distributing a product or service.

Sales Messages

Communications designed to inform or persuade customers about a product or service.

Adapting Guidelines

Modifying or adjusting rules or instructions to suit a particular situation, context, or purpose.