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A Country Is Said to Have a Comparative Advantage in the Production

Question 30

Multiple Choice

A country is said to have a comparative advantage in the production of a good when


A) it can produce more of that good with a unit of its resources than another country.
B) specialization in the production of the good and trade enables it to consume more of all goods.
C) production of the good requires a greater sacrifice of other goods than in another country.
D) it enables the country to be self-sufficient and eliminates the need for trade.
E) production of the good requires complete specialization.

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