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.

---

Definitions:

Units Of X

A measure used to quantify quantities of a particular good or service, often used in economics and manufacturing to specify output or consumption volumes.

Units Of Y

Quantitative measures or quantities of the variable Y, often used in mathematical or economic models to represent a particular variable.

Paperback Novels

Books with soft covers, which are typically bound with glue rather than stitches or staples, and are a form of publication for literary works.

Bunches Of Bananas

Typically used to describe a quantity or grouping of bananas, often in economic examples to discuss market transactions involving goods.