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Consider the Gains from Trade

Question 23

Multiple Choice

Consider the gains from trade.What is the best definition of "comparative advantage"?


A) The ability of one region to produce a commodity at a lower opportunity cost than another region.
B) The ability of one region to produce a commodity with less labour input than another region.
C) The ability of one region to produce a commodity with fewer total inputs than another region.
D) The gains from international trade.
E) The terms of trade index.

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