If a Country Has a Comparative Advantage in the Production

question 98

Multiple Choice

If a country has a comparative advantage in the production of a good:

• A) it can produce that good at a lower opportunity cost.
• B) it will find trade most beneficial when it trades with another country that has a comparative advantage in the same good.
• C) it will not find trade beneficial because other country(ies) won't have a comparative advantage in other goods.
• D) it must also have an absolute advantage in the good.

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