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When Opportunity Costs Are Identical Between Two Countries for All

Question 41

Multiple Choice

When opportunity costs are identical between two countries for all goods,


A) international trade will be advantageous only to the country that has an absolute advantage in the production of some commodity.
B) there will be gains from trade for both countries if one country has an absolute advantage in the production of some commodity.
C) absolute advantages will determine the gains from trade.
D) there can be no gains from trade unless there are economies of scale in some of the products.
E) there will be absolute advantages from trade but no comparative advantages from trade.

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