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Chechinko, an African Country, and Herito, an Asian Country, Use

Question 60

Multiple Choice

Chechinko, an African country, and Herito, an Asian country, use the same amount of resources to produce alcohol. Despite this, Chechinko is able to manufacture a higher quantity of alcohol than Herito. In this context, which of the following statements is definitely true of Chechinko?


A) Chechinko has a higher trade surplus than Herito.
B) Chechinko enjoys an absolute advantage in terms of alcohol production, relative to Herito.
C) Chechinko has a higher balance of trade than Herito.
D) Chechinko can produce alcohol at a lower opportunity cost compared to Herito.

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