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Which One of the Following Is FALSE

Question 41

Multiple Choice

Which one of the following is FALSE?


A) A country can only have a comparative advantage in producing a good if it also has an absolute advantage in producing that good.
B) A country has a comparative advantage in producing a good if it can do so at a lower opportunity cost than any other country can.
C) Trade allows each country to specialize in producing those goods for which it enjoys a comparative advantage.
D) Both tariffs and quotas reduce the volume of trade.

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