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According to the Theory of Comparative Advantage

Question 67

Multiple Choice

According to the theory of comparative advantage,


A) a nation should produce the goods at which it is most efficient.
B) a nation can gain from trade if it is equally inefficient in producing two goods.
C) a nation must have an absolute advantage in at least one good to gain from trade.
D) a nation must have an absolute advantage in at least three goods to gain from trade.
E) a nation should trade with countries with similar levels of per capita income.

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