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The Law of Comparative Advantage Proves That

Question 9

Multiple Choice

The law of comparative advantage proves that:


A) all countries can benefit from international trade as long as their relative efficiencies in production differ.
B) all countries can benefit from international trade as long as each has an absolute advantage in the production of a good or service.
C) countries with larger GDPs will not find it advantageous to trade with smaller countries.
D) because of transportation costs, very little international trade is profitable.

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