Final answer:
The statement is false; resources can be scarce based on availability and demand, not solely on the absence of a structural equivalent. The source of comparative advantage includes various factors beyond natural elements, and substitution plays a crucial role in managing scarcity.
Step-by-step explanation:
Resources are considered rare when they have no structural equivalent. To evaluate the true value of this statement, it is crucial to understand the concept of scarcity and its relation to resources.
Scarcity means that resources are limited and not always available in sufficient quantities to satisfy all wants and needs. This does not necessarily imply that a resource must have no structural equivalent to be considered scarce. In fact, the air we breathe is in large supply and generally available without cost, but it is still subject to scarcity because if we look at clean air specifically, it is not infinite and sometimes not easily accessible, especially in polluted areas. Therefore, the statement that resources are considered rare when they have no structural equivalent is false. Resources can be considered rare or scarce based on their availability in relation to demand, not solely on whether there is an identical substitute. In terms of competitive advantage, it is false that the source of comparative advantage must only be natural elements like climate and mineral deposits. Comparative advantage can also arise from various other factors, including technology, skilled labor, innovations, and institutional structures, which enable a country or entity to produce a good or service at a lower opportunity cost than others.