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If China Has an Absolute Advantage Over Canada in Producing

Question 74

Multiple Choice

If China has an absolute advantage over Canada in producing both rice and tires,then


A) China should produce both rice and tire and Canada should produce both rice and tires
B) there are no benefits possible to China from specialization
C) Canada should produce tires and China should produce rice
D) China should produce tires and Canada should produce rice
E) more information is needed to tell whether China or Canada should specialize

Correct Answer:

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