Which of the Following Statements Is NOT an Implication of the Law

question 43

Multiple Choice

Which of the following statements is NOT an implication of the law of comparative advantage?

• A) With sufficiently cheap labor, a nation (say China) could have a competitive advantage in producing and selling all goods to other nations.
• B) Individuals have an economic incentive to specialize in producing goods or services in which they have a comparative advantage.
• C) No nation can produce all goods comparatively cheaper than other nations.
• D) All persons trading goods can have more of all goods.

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Definitions:

Consumer Demand

The desire of consumers for specific goods or services, influenced by their purchasing power, preferences, and needs.

Operating Cost

Expenses associated with the day-to-day functions of a business, including rent, equipment, inventory costs, marketing, payroll, insurance, and funds allocated for research and development.

Different Prices

A scenario in which a product or service is offered at varied prices to different customers or in different markets or circumstances.

Service Component

Part of a product offering that involves the provision of labor or expertise, rather than a physical product, to satisfy customer needs.