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If the Opportunity Cost of a Television Set Equals 20

Question 61

Multiple Choice

If the opportunity cost of a television set equals 20 cameras in China,but 10 cameras in Japan,then we know


A) all of the following
B) that China has a comparative advantage in producing cameras
C) that Japan has a comparative advantage in producing TV sets
D) that Japan may well have an absolute disadvantage in producing both goods
E) that market exchange of 1 TV set for 15 cameras would produce not only mutually beneficial trade,but would also split the gains from trade equally between the two countries

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