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Consider Two Countries That Can Produce Rice and Other Products

Question 63

Multiple Choice

Consider two countries that can produce rice and other products.If neither country has an absolute advantage in the production of rice,


A) there is no possibility that either country will import rice from the other.
B) neither country can possibly have a comparative advantage in the production of rice.
C) rice will still be traded as long as one of the countries has a comparative advantage in its production.
D) the opportunity cost of producing rice must be identical in the two countries.
E) then rice should not be produced.

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