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With One Unit of Resources Each, Country a Can Produce

Question 31

Multiple Choice

With one unit of resources each, Country A can produce 12 schools or 4 hospitals and Country B can produce 12 schools or 6 hospitals.
-According to the principle of comparative advantage, Country A should:


A) produce both schools and hospitals.
B) produce neither schools nor hospitals.
C) specialize in the production of schools.
D) specialize in the production of hospitals.

Correct Answer:

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