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Comparative Advantage Explains Why a Nation Will Benefit from Trade

Question 4

Multiple Choice

Comparative advantage explains why a nation will benefit from trade when:


A) it exports more than it imports.
B) its trading partners are experiencing offsetting losses.
C) it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
D) it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.

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