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When Mike Has an Absolute Advantage in the Production of Two

Question 61

Multiple Choice

When Mike has an absolute advantage in the production of two goods over Tommy, Mike


A) is better off if he does not engage in specialisation and trade with Tommy.
B) is more productive in producing both goods than Tommy.
C) is less productive than Tommy.
D) cannot gain from trade with Tommy.
E) always has a comparative advantage over Tommy in the production of both goods.

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