Can a country have comparative advantage in all products? What ...

[nelaaney]

Can a country have comparative advantage in all products?
 
  What will be an ideal response?

Question 2

Both the ________ do not put a great deal of emphasis on the capital account.
 
  A) absorption and monetary approaches
  B) monetary and elasticities approaches
  C) elasticities and absorption approaches
  D) None of the above

[rleezy04]

Answer to Question 1

No, a country can never have comparative advantage in all products, no matter how productive it is in general. Comparative advantage has to do with the relative price a country can produce one good or another in autarky versus the cost at which they can trade those goods with other economies. There will always be goods that are cheaper to produce in another country than at home, relative to the opportunity cost of not producing goods in which the country has comparative advantage.

Answer to Question 2

C