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Which Statement Is Asserted by the Theory of Absolute Advantage

Question 36

Multiple Choice

Which statement is asserted by the theory of absolute advantage?


A) A country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive.
B) A country should import goods from developing economies in order to maximize returns on profit and economies of scale.
C) A country will have a comparative advantage if it makes products that rely on global supply networks.
D) Most trade in manufactured goods should be between countries with similar per capita incomes.

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