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.

The correct answer is d. A country that possesses an absolute advantage will always have a comparative advantage.

Explanation:

International trade has developed from criticism of mercantilism. Its great precursors were Adam Smith and David Ricardo, who in the scenario that were developed managed to formulate the theories of absolute and comparative advantage, respectively, managing to give an explanation of how trade between countries should work.

As is normal in the economy, someone will always come to improve or refute the theories you create, in the case of Adam Smith, it was David Ricardo, who analyzed from the perspective of relative costs, which according to him “determine the value in the exchanges international and from them you can define the patterns of specialization, taking into account two elements: labor costs and exchange relations between countries ”3. From these concepts Ricardo points out in his theory of comparative advantage that; He says: “The least efficient nation must specialize and export the product in which it is relatively less inefficient (where its absolute advantage is less) and the most efficient nation must specialize and export the product in which it is relatively more efficient” 4. In short, the country must carry out and export the good where it invests relatively less work.

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