Comparative advantage has mixed results when it comes to predicting a country's trade patterns. Which of the following is FALSE?
A) There are many potential products an economy might export that use the same comparative advantage.
B) A large share of international trade is not based on comparative advantage.
C) Comparative advantage has proven completely incapable of predicting trade.
D) Comparative advantage is a dynamic concept, which means that the spread of technology, improvement in skills, and learning-by-doing may alter a country's comparative advantage over time.
C
You might also like to view...
The current account balance is equal to net exports ________ net interest ________ net transfers
A) plus; minus B) minus; minus C) minus; plus D) plus; plus E) multiplied by; multiplied by
A ray through the origin always has a slope of one.
Answer the following statement true (T) or false (F)
One of the effects of gas prices rising from about $2 to about $4 per gallon was airlines ordering new, fuel-efficient aircraft
a. True b. False Indicate whether the statement is true or false
Profit-maximizing firms enter a competitive market when existing firms in that market have
a. total revenues that exceed fixed costs. b. total revenues that exceed total variable costs. c. average total costs that exceed average revenue. d. average total costs less than market price.