Multiple Choice
Which of the following statements is FALSE?
A) Comparative advantage is the principle upon which trade patterns are based.
B) Opportunity cost measures the real cost to a country of producing a certain product.
C) The gains from trade are the result of differences in opportunity cost and comparative advantage.
D) A country that possesses an absolute advantage will always have a comparative advantage.
E) Comparative advantage is necessary and sufficient for trade.
Correct Answer:
Verified
Correct Answer:
Verified
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