Which of the Following Statements About Absolute and Comparative Advantage

question 126

Multiple Choice

Which of the following statements about absolute and comparative advantage is not true? A country may have:

• A) a comparative advantage but not an absolute advantage in the production of a good.
• B) an absolute advantage but not a comparative advantage in the production of a good
• C) the absolute advantage in the production of all goods.
• D) neither absolute nor comparative advantage in the production of any goods.

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Definitions:

Psychological Dependency

A mental reliance on a substance, activity, or behavior that can lead to emotional distress or difficulty in functioning without it.

Shrinkage

the reduction in inventory due to factors such as theft, damage, or administrative errors, not sales.

Inventory Losses

The reduction in inventory due to factors such as theft, damage, or obsolescence, resulting in financial loss for a business.

Shoplifting

The unauthorized removal of goods from a retail establishment without payment, considered a form of theft.