Which of the following statements about comparative advantage is true?
A) Comparative advantage is based solely on differences in factor endowments.
B) A country with a rising price level will lose any existing comparative advantage.
C) Comparative advantage is based solely on differences in climate.
D) Comparative advantage for certain products may be acquired by deliberate domestic government policy.
E) To have a comparative advantage a country must also have an absolute advantage.
Correct Answer:
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