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Consider the Possibility of Trade Between Countries

Question 3

Multiple Choice

Consider the possibility of trade between countries.When opportunity costs differ between countries,


A) comparative advantages may not exist.
B) specialization and trade can lead to increases in the production of all commodities.
C) each country should produce only those goods for which it has an absolute advantage.
D) only the smaller countries will benefit from trade.
E) only the larger countries will benefit from trade.

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