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The Existence of "Absolute Advantage

Question 69

Multiple Choice

The existence of "absolute advantage"


A) fosters the self- sufficiency of nations.
B) refers to a situation where one country can produce one unit of a given product with fewer resources than the other country.
C) refers to a situation in which one country can produce one unit of all goods with fewer resources than can another country.
D) implies that there will be no benefits from trade between two nations.
E) is not physically possible.

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