Comparative advantage reﬂects differences in factor endowments between countries.

Name: Comparative advantage reﬂects differences in factor endowments between countries.
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Question

Quizplus · Accepted Answer

Comparative advantage theory states that countries should specialize in the production of goods and services that they can produce at a lower opportunity cost compared to other countries. This is often due to differences in factor endowments, such as natural resources, labor, and technology. Therefore, the statement is true.

Comparative Advantage Reﬂects Differences in Factor Endowments Between Countries