Which of the following statements about comparative advantage is not true?
A)Comparative advantage is determined by which person or group of persons can produce a given quantity of a good using the fewest resources.
B)The principle of comparative advantage applies to countries as well as to individuals.
C)Economists use the principle of comparative advantage to emphasize the potential benefits of free trade.
D)A country may have a comparative advantage in producing a good, even though it lacks an absolute advantage in producing that good.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by who can produce a good at a lower opportunity cost, not necessarily who uses the fewest resources. Absolute advantage refers to using the fewest resources.

Which of the Following Statements About Comparative Advantage Is Not