The law of comparative advantage does not apply to
A)entire nations
B)natural resources like air and sunshine
C)individuals
D)firms
E)regions of a country

Question

Quizplus · Accepted Answer

The law of comparative advantage applies to the allocation of production among individuals, firms, and regions/countries based on their respective abilities to produce goods and services efficiently. However, it does not apply to natural resources like air and sunshine as they are not produced by individuals, firms, or regions/countries.

The Law of Comparative Advantage Does Not Apply to