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If Country a Has a Lower Opportunity Cost of Producing

Question 33

Multiple Choice

If country A has a lower opportunity cost of producing cars than country B, then country A has


A) a comparative advantage in car production and country B has an absolute advantage in car production.
B) an absolute advantage in car production.
C) a comparative advantage in car production.
D) an absolute and a comparative advantage in car production.
E) no reason to trade with country B.

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