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If Country a Has a Comparative Advantage in the Production

Question 2

Multiple Choice

If Country A has a comparative advantage in the production of good X relative to Country B,


A) we do not have enough information to say anything about relative opportunity costs.
B) then Country A also has an absolute advantage in the production of this good.
C) then the opportunity cost of producing X in Country A is higher than in Country B.
D) then Country A also has an absolute advantage in the production of some good other than X.
E) then the opportunity cost of producing X in Country A is lower than in Country B.

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