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Suppose the Opportunity Costs of Production of Goods Differ Between

Question 6

Multiple Choice

Suppose the opportunity costs of production of goods differ between two countries. Which of the following statements is true?


A) It will not be possible for either country to gain from trading with the other.
B) If each country specializes and trades with the other, there will be an increase in the
C) Each country should produce all the goods to promote self-sufficiency.
D) Neither country will have a comparative advantage in the production in any of the goods.

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