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Which of the Following Is NOT a Limitation of the Absolute

Question 115

Multiple Choice

Which of the following is NOT a limitation of the absolute and comparative advantage theories?


A) There are only two countries engaged in the production and consumption of just two goods.
B) There are no costs for transporting traded goods from one country to another.
C) Labor is the only resource.
D) Specialization in the production of one good results in efficiency gains.

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