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Comparative Advantage Indicates That

Question 115

Multiple Choice

Comparative advantage indicates that:


A) specialization and exchange will permit trading partners to maximize their joint consumption.
B) a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods.
C) a nation can gain from trade only when its trading partners are not low-wage countries.
D) countries should export products for which they are high-opportunity cost producers.

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