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When the Principle of Comparative Advantage Is Used to Guide

Question 3

Multiple Choice

When the principle of comparative advantage is used to guide trade,then a country will


A) specialize only in that good with the highest opportunity cost.
B) specialize only in goods with the lowest opportunity costs.
C) specialize only in that good where production is less per worker-hour than another country.
D) specialize only in that good where production costs are more than average total costs.

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