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According to Adam Smith,countries Should Specialize in the Production of Goods

Question 58

Multiple Choice

According to Adam Smith,countries should specialize in the production of goods for which they have an absolute advantage and then:


A) retain these goods for strict domestic sales.
B) trade these goods for goods produced by other countries.
C) sell these products domestically at prices which are much below the cost price.
D) sell these products at a price, which is lower than the cost price, in developing countries so as to help them achieve economic progress.
E) devote all available resources to produce only those goods.

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