Which of the following would NOT be considered a feature of comparative advantage?
A) Exporters in Country A sell goods or services to unrelated importers in Country B.
B) Firms in Country A specialize in making products that can be produced relatively efficiently, given County A's endowment of factors of production. Firms in Country B do likewise thus maximizing the combined output of Countries A and B.
C) Trade exists between Counties A and B because of specialized factors of production that cannot be moved among countries.
D) All of the above are features of comparative advantage.

Question

Quizplus · Accepted Answer

All of the given options are features of comparative advantage. Option A describes the trade aspect of comparative advantage, Option B describes the specialization of factors of production, and Option C highlights the immobility of factors of production as the reason for trade to occur. Thus, all of the options are correct.

Which of the Following Would NOT Be Considered a Feature