Comparative Advantage Differs from Absolute Advantage in That the Former

Comparative advantage differs from absolute advantage in that the former ________, whereas the latter ________.

A) holds that countries should specialize their production; does not
B) holds that trade should be kept as nearly in balance as possible; says countries should seek a favorable balance of trade
C) bases trade on natural advantages; bases trade on acquired advantage
D) states that there is a basis of trade even if one country can produce everything more efficiently than another country; does not deal with this issue

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