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Japan and China Can Both Produce Guns and Rice

Question 16

Multiple Choice

Japan and China can both produce guns and rice.What type of advantage will the country with the lowest opportunity cost of guns (in terms of rice) have?


A) It will have a comparative advantage in guns.
B) It will have an absolute advantage in guns.
C) It will have absolute advantage in rice.
D) It will have a comparative advantage in rice.

Correct Answer:

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