When the Principle of Comparative Advantage Is Used to Guide

question 76

Multiple Choice

When the principle of comparative advantage is used to guide trade,then a country will

• A)specialize only in that good with the highest opportunity cost.
• B)specialize only in goods with the lowest opportunity costs.
• C)specialize only in that good where production is less per worker-hour than another country.
• D)specialize only in that good where production costs are more than average total costs.

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