Which of the following statements is true about comparative advantage?
a. Comparative advantage exists whenever one person, firm, or nation can do something at higher 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. Low income countries cannot possibly have a comparative advantage in the production of any good or service because of the relatively low literacy rate.
d. Comparative advantage exists whenever one person, firm, or nation can do something at lower opportunity costs than some other individual, firm, or nation.
e. Only technologically advanced economies can have a comparative advantage in the production of a good or service.
Question 2
Which of the following would most likely be an example of market failure?
a. industrial water pollution
b. eBay transactions
c. tradable pollution permits
d. brokers re-selling tickets for concerts
Comparative illustration of a leopard (left) and cheetah (right)
A true albino squirrel. Note the pink eyes.
True-color view of Mars seen through NASA's Hubble Space Telescope in 1999
TrUe....FaLsE
True-color image of layers of haze in Titan's atmosphere.
The comparative brain sizes of different species