In Comparative Advantage,the Assumption Is That Resources Can Move Freely

question 36

Multiple Choice

In comparative advantage,the assumption is that resources can move freely from production of one good to another.Why is this assumption unrealistic?

• A)The process of shifting resources from one good to another eliminates human suffering.
• B)The benefit of free trade is much lesser compared to the cost of shifting resources.
• C)The process of moving resources causes friction and human suffering.
• D)There are regulations that prohibit such movement.

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