Final answer:
It is false that product quality can only be assessed by hard factors; soft factors also play a key role. Productivity can be measured through more than just output per hour, considering factors like efficiency and innovation. Comparative advantage involves more than natural elements and includes skills and technology transfer.
Step-by-step explanation:
The statement that product quality can only be assessed by measuring hard quality factors is false. While hard factors like durability, functionality, and specifications are quantifiable and important, there are also subjective or soft quality factors such as customer satisfaction, brand reputation, and aesthetic appeal that play a crucial role in assessing product quality. Engineers do focus on product attributes, but comprehensive quality evaluation often requires going beyond what can be easily measured. Inadequately tested prototypes can miss subjective quality issues. To evaluate the quality of a design, customer feedback, brand perception, and market position among others are used alongside measurable factors.
Furthermore, regarding productivity, there are alternative ways to measure it besides the amount produced per hour. These include factors like efficiency, employee satisfaction, innovation, and quality of work.
Comparative advantage in trade is not solely based on natural elements; it can also include factors such as technology, skills, and knowledge transfer, which may not be easily measured in economic statistics.