Which of the following statements is false?
A) Owners of factors of production used in industries in which a nation lacks a comparative advantage may be hurt by free trade.
B) Trade based on comparative advantage enables a country to produce outside its production possibilities curve.
C) Trade based on comparative advantage enables a country to consume outside its production possibilities curve.
D) Generally, trade between two countries tends to be mutually beneficial.

Question

Quizplus · Accepted Answer

Trade based on comparative advantage allows a country to consume outside its production possibilities curve, not produce outside it.

Which of the Following Statements Is False