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Suppose That After Specializing According to Comparative Advantage,a Country Is

question 222

Multiple Choice

Suppose that after specializing according to comparative advantage,a country is trading with another nation that also specializes according to its comparative advantage.Which of the following statements are true for the first country?
i.It enjoys gains from trade.
ii.It must have an absolute advantage in the production of the good it produces.
iii.It is producing at a point beyond its PPF.


Definitions:

Team

A group of individuals working together to achieve a common goal or complete a task.

Family Ownership Group

A business organization where the majority of control and ownership lies within a single family, often passed down through generations.

Formal Investment Criteria

The specific guidelines or standards used by investors to evaluate potential investment opportunities.

Family Cash Investments

Funds invested by family members in a business or venture, often characterized by a more personal or relational investment criteria.

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