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.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: The basis for free trade is the
Q2: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3033/.jpg" alt=" The table above
Q3: What did Adam Smith perceive was primarily
Q4: Based on Table 3.1,trade between the United
Q6: If one nation is able to produce
Q7: A country will gain relatively more from
Q8: If a nation has no absolute advantage,then
Q9: Adam Smith created the theory of comparative
Q10: All individuals and firms in a country
Q11: Free trade may be good for a