Which of the following statements about comparative advantage is FALSE?
A. International trade will benefit an entire economy, but some particular groups of people may be hurt by expanding trade.
B. A country's comparative advantage cannot be determined by looking only at its own economy.
C. Expanding international trade hurts a nation's economy if it causes the nation's currency to depreciate.
D. There is always a trade between two countries that can make both better off.
Answer: C
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If two countries are economically identical except that citizens in one country have more leisure time, then the level of GDP:
A. will be the same in both countries. B. will be higher in the country with more leisure time. C. will be higher in the country with less leisure time. D. will be greater than the level of economic well being in each country.