The Comparative Advantage Theory Is Considered to Have Ignored Which

question 101

Multiple Choice

The comparative advantage theory is considered to have ignored which of the following statements?

• A)Constant returns to specialization implies a concave Production Possibility Frontier.
• B)Constant returns to specialization suggests that the gains from specialization are likely to be exhausted before specialization is complete.
• C)It is feasible for a country to specialize to a point where the resulting gains from trade are outweighed by diminishing returns.
• D)Different goods use different resources in different proportions.