Which of the following statements is FALSE? A. Trade based on the law of compara

Question

Which of the following statements is FALSE?




A. Trade based on the law of comparative advantage enables a country to produce outside its production possibilities frontier (PPF).

B. Trade based on the law of comparative advantage enables a country to consume outside its PPF.

C. Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods.

D. While it is true that a country may have an absolute advantage in everything it produces, it is not possible to have a comparative advantage in everything it produces





They all seem to be true..., which is impossible

Explanation / Answer

A is false

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