Suppose Venezuela can produce petroleum at a lower opportunity cost because of its natural resources, and China can produce clothing at a low opportunity cost because of its population and level of industrial development.
Which statement below regarding comparative advantage is NOT true?
China has a comparative advantage in clothing production.
Venezuela has a comparative advantage in petroleum production.
Venezuela can produce clothing at low opportunity cost.
China can produce petroleum at high opportunity cost.
Unlock access to this and over
10,000 step-by-step explanations
Have an account? Log In