U. S. agriculture has a comparative advantage in agriculture and so stands to be a big beneficiary if the TPP is enacted. Which statement below is true of the theory of comparative advantageMultiple Choice

a. The focus in the theory of comparative advantage is on exchange rates.

b. Potential world production is greater with unrestricted free trade than it is with restricted trade.

c. The theory of comparative advantage views trade as a zero-sum game.

d. The theory of comparative advantage is superseded by the theory of absolute advantage.

e. Free trade is unequivocally dismissed under the theory of comparative advantage.

The answer is option E)Free trade is unequivocally dismissed under the theory of comparative advantage.

Explanation:

Trans-Pacific Partnership (TPP) is a trade and investment agreement under negotiation by 12 Pacific Rim countries, including the United States.

The TPP accounts for 42 percent of the global agricultural exports of the United States and 47 percent of its agricultural imports.

Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage in productivity.

Comparative advantage theory was first developed by 19th-century British economist David Ricardo, that attributed the cause and benefits of international trade to the differences in the relative opportunity costs.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

750 h and costs $0.60 per bulb.