Which Statement Does NOT Describe a Source of Comparative Advantage

question 226

Multiple Choice

Which statement does NOT describe a source of comparative advantage?

• A) In general,France has absolute advantage over Italy in production of goods and services.
• B) Canada's technology for computer chip design is more advanced than India's.
• C) Hawaii has a more favourable climate to grow pineapple than does Italy.
• D) In the market for lumber,Canada has many more trees than does England.

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Definitions:

Discount Rate

in finance, refers to the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Lump Sum

A single payment made at a particular time, as opposed to multiple payments over time.

Sub-Contracting

The process of outsourcing specific portions of a project or job to specialized third parties while retaining overall responsibility for completion.

Discount Rate

Employed in discounted cash flow analysis, this interest rate is used for determining the current value of cash flows that will be received in the future.