Which of the Following Statements About Comparative Advantage Is FALSE

question 19

Multiple Choice

Which of the following statements about comparative advantage is FALSE?

• A) There is always a trade between two countries that can make both better off.
• B) A country's comparative advantage cannot be determined by looking only at its own economy.
• C) International trade will benefit an entire economy, but some particular groups of people may be hurt by expanding trade.
• D) Expanding international trade hurts a nation's economy if it causes the nation's currency to depreciate.

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Definitions:

Air Force Service Pilots

A group of civilian women pilots employed to fly military aircraft under the United States Army Air Forces during World War II to free male pilots for combat roles.

American Women

Refers to female citizens of the United States, highlighting their roles, rights, challenges, and contributions to society across history.

Bretton Woods Agreement

A 1944 agreement establishing the International Monetary Fund (IMF) and the World Bank to promote international economic cooperation and reconstruction after World War II.

Currency Exchanges

Marketplaces where currencies are traded, allowing for the conversion of one country's currency into another's for commerce, trade, or tourism.