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Trade in Cars Between Canada and the United States Occurs

Question 109

Multiple Choice

Trade in cars between Canada and the United States occurs


A) because Canada has a comparative advantage.
B) because the United States has a comparative advantage and Canada has the absolute advantage.
C) even though neither country has an obvious comparative advantage.
D) because the United States has a comparative advantage.
E) because both countries have a comparative advantage.

Correct Answer:

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