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If Two Countries Each Produce Wool and Cotton, the Country

Question 51

Multiple Choice

If two countries each produce wool and cotton, the country with the higher opportunity cost for cotton (in terms of wool) will also have


A) an absolute advantage in the production of cotton.
B) an absolute advantage in the production of both wool and cotton.
C) a comparative advantage in the production of cotton.
D) a comparative advantage in the production of wool.
E) an absolute advantage in the production of wool.

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