Final answer:
False. Comparative advantage can be based on factors other than natural elements like climate and mineral deposits. Education levels, knowledge base, specialization, economies of scale, and other factors can all determine comparative advantage.
Step-by-step explanation:
False. The source of comparative advantage does not have to be limited to natural elements like climate and mineral deposits. Comparative advantage refers to the ability of a country or entity to produce a good or service at a lower opportunity cost than others. Factors such as education levels, knowledge base, specialization, economies of scale, and other factors can all contribute to a country's comparative advantage. For example, a country with a highly educated workforce may have a comparative advantage in producing high-tech goods, while a country with abundant natural resources may have a comparative advantage in extracting and exporting those resources.