Consider the Possibility of Trade Between Countries

question 3

Multiple Choice

Consider the possibility of trade between countries.When opportunity costs differ between countries,

• A)comparative advantages may not exist.
• B)specialization and trade can lead to increases in the production of all commodities.
• C)each country should produce only those goods for which it has an absolute advantage.
• D)only the smaller countries will benefit from trade.
• E)only the larger countries will benefit from trade.

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