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If Argentina Has an Absolute Advantage in the Production of Wheat

Question 36

Multiple Choice

If Argentina has an absolute advantage in the production of wheat and Chile has an absolute advantage in the production of copper, then:


A) neither country has anything to gain from specialisation and trade
B) it is reasonable to expect that specialisation will benefit both countries, but that trade will not
C) it is reasonable to expect that trade will benefit both countries, but that specialisation will not
D) it is reasonable to expect that specialisation and trade will benefit both countries

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