In a Two-Country Two-Good Model, If a Country Has a Comparative

question 44

Multiple Choice

In a two-country two-good model, if a country has a comparative advantage in the production of a certain good, it implies that this country:

• A)also has an absolute advantage in the production of this good.
• B)will start importing this good from the other country.
• C)can produce this good at a lower opportunity cost than the other country.
• D)uses most of its resources in the production of this good .

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Overweight

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