If Country a Has an Absolute Advantage Over Country B

question 73

Multiple Choice

If Country A has an absolute advantage over Country B in the production of every commodity,

• A) mutual gains from trade between Country A and Country B would be impossible.
• B) Country B would be able to gain from trade but not country A.
• C) the joint output of the two countries could not be increased through specialization and exchange.
• D) mutual gains from trade would still be possible.

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