Which of the Following Statements Is True Regarding Comparative Advantage

question 30

Multiple Choice

Which of the following statements is true regarding comparative advantage?

• A)Comparative advantage is becoming rare these days.
• B)Ensuring that its people are well educated is another way a nation can develop a comparative advantage in skilled human resources.
• C)Developing countries possess no comparative advantage.
• D)A nation must first possess an absolute advantage in a particular area before it can gain a comparative advantage.

---

Definitions:

Simple Interest

Interest calculated only on the initial amount of money (principal), not on the interest accrued over time.

Investment

Allocation of resources, such as time, money, or effort, in hope of generating a future benefit or return.

Interest Rate

The interest percentage applied on the sum of money borrowed by an individual from a financial lender.

Pay Off

A financial term describing the complete repayment of a loan or debt along with any interest owed.