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If Domestic Producers Have a Comparative Advantage in Producing a Good

Question 43

Multiple Choice

If domestic producers have a comparative advantage in producing a good,


A) trade restrictions will be required before the producers can benefit from their comparative advantage.
B) trade restrictions will still be required before the domestic producers can compete with low-wage producers abroad.
C) they will be able to compete effectively in a competitive world market.
D) the government should subsidize production of the good so the domestic producers will be able to achieve a larger share of the world market.

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