The Principle of Comparative Advantage Explains How

question 134

Multiple Choice

The principle of comparative advantage explains how

• A)one nation can take advantage of another one through international trade.
• B)two nations may engage in mutually beneficial trade, even though one of them is more productive than the other.
• C)one individual can take advantage of another through international trade.
• D)some people are good at producing everything, while others have no comparative advantages.
• E)some nations end up with large trade surpluses.

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