Use the Table Below to Answer the Following Question

question 55

Multiple Choice

Use the table below to answer the following question. The table outlines the production possibilities of Slavia and Italia for food and clothing. The law of comparative advantage suggests that

• A) neither country could gain from trade, even if the costs of transporting the products were zero.
• B) Italia could not gain from trade because it has an absolute advantage in producing both goods.
• C) both countries could gain if Italia traded food for clothing produced in Slavia.
• D) both countries could gain if Slavia traded food for clothing produced in Italia.

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