Which of the Following Statements About Comparative Advantage Is Not

question 129

Multiple Choice

Which of the following statements about comparative advantage is not true?

• A)Comparative advantage is determined by which person or group of persons can produce a given quantity of a good using the fewest resources.
• B)The principle of comparative advantage applies to countries as well as to individuals.
• C)Economists use the principle of comparative advantage to emphasize the potential benefits of free trade.
• D)A country may have a comparative advantage in producing a good, even though it lacks an absolute advantage in producing that good.

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Definitions:

Share Options

Rights granted by a company to its employees or executives that allow them to buy shares of the company at a specified price for a specified period.

Performance Hurdle

A benchmark or specific target set that must be achieved before certain rewards, such as bonuses or stock options, are granted.

Repriced Option

An option whose terms, specifically the strike price, have been adjusted, typically to make the options more favorable for the holder following declines in the market price of the underlying asset.