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According to the Theory of Comparative Advantage

Question 12

Multiple Choice

According to the theory of comparative advantage,


A) a country can gain from trade only if it can produce all goods at a lower cost than its trade partner.
B) a country can gain from trade only if it can produce a good at a lower cost than another country.
C) a country can gain from trade only if it can produce a good more efficiently than another country.
D) any country can gain from trade.
E) only high-income countries will gain from trade

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