Which of the Following Is True About Absolute Advantage Principle

question 20

Multiple Choice

Which of the following is true about absolute advantage principle?

• A)According to this approach, enhanced product specialization adversely affects communal welfare.
• B)This approach allows the nation to consume more than it otherwise could, generally at lower cost.
• C)This is the only approach that can be used to explain why nations attempt to run a trade surplus.
• D)This approach explains the process by which firms acquire and retain one or more value-chain activities inside the firm.

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