Greece and Germany can both produce fish and cars.Greece has a comparative advantage in cars,but Germany has an absolute advantage in cars.What would Germany import from Greece?
A) Nothing, because Germany has a comparative advantage in fish and an absolute advantage in cars.
B) Cars, because it is relatively cheaper for Greece to produce them.
C) Fish, because Germany can produce cars cheaper than Greece.
D) Both fish and cars, because Germany's absolute advantage in cars creates more income.
Correct Answer:
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