A country often enjoys a comparative advantage because of the abundance of a particular production factor (land,labor,capital,or entrepreneurship)within its borders.

Question

Quizplus · Accepted Answer

This statement is true. A country can have a comparative advantage in producing goods or services that rely on the abundance of a certain production factor that it possesses. For example, a country with vast reserves of natural resources may have a comparative advantage in producing goods that require those resources.

A Country Often Enjoys a Comparative Advantage Because of the Abundance