Which of the following statements is true about comparative advantage?
A) Comparative advantage exists whenever one person,firm,or nation can do something with greater opportunity costs than some other individual,firm,or nation.
B) Comparative advantage is interesting theoretically,but it is not relevant when evaluating real-world economic conditions.
C) Third-world countries cannot possibly have a comparative advantage in the production of any good or service because of the relatively low educational attainment of their work force.
D) Comparative advantage exists whenever one person,firm,or nation can do something with lesser opportunity costs than some other individual,firm,or nation.
E) Only highly advanced economies can have a comparative advantage in the production of a good or service.
Correct Answer:
Verified
Q58: The table given below represents the output
Q59: The table given below represents butter and
Q60: Consider the production possibilities curve [PPC] for
Q62: The figure given below represents the PPC
Q65: The figure given below represents the PPC
Q66: The figure given below represents the PPC
Q66: A person has a comparative advantage in
Q67: The figure given below represents the PPC
Q68: Which of the following exemplifies a private
Q80: The figure given below represents the PPC
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents