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All of the Following Statements Regarding Comparative Advantage Are True

Question 1

Multiple Choice

All of the following statements regarding comparative advantage are true EXCEPT which?


A) Tourism has a comparative advantage when a region is especially appealing to tourists.
B) Tourism has a comparative advantage when a region has no alternative industry to develop other than tourism.
C) Economic decisions must be based on comparative advantage.
D) Many island economies consider that tourism has a comparative advantage because of their currency exchange rate.

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