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When One Country Can Produce a Good More Efficiently Than

Question 94

Multiple Choice

When one country can produce a good more efficiently than another country:


A) that country should produce that good and be the sole "winner" of trade.
B) that country can specialize in that good and choose only to export goods.
C) both can specialize in the industry in which they have comparative advantage and experience mutual gains.
D) that country has no basis for trading with another nation.

Correct Answer:

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