Final answer:
Comparative advantage is not solely based on natural factors like climate and mineral deposits but includes a variety of factors such as education, knowledge bases, specialized learning in the production chain, and economies of scale.
Step-by-step explanation:
False. The concept of comparative advantage in economics does not just include natural factors like climate and mineral deposits. Instead, it encompasses any source of difference in productivity between two entities. These can include the level of education of workers, knowledge base of professionals, specialized sections of a value chain, and even economies of scale. An example of such advantages could be the education system in one country that produces highly skilled labor, resulting in a comparative advantage in industries that require such skills, like technology or manufacturing.
These sources are not inherently tied to a country's natural resources; rather, they can develop over time through investments in education, technology, infrastructure, or other policy decisions. Comparative advantage drives international trade, as it dictates which countries are best suited for the production of different goods and services, based upon their respective opportunity costs and efficiencies.