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Suppose Two Countries Each Produce Wool and Cotton

Question 103

Multiple Choice

Suppose two countries each produce wool and cotton.The country with the higher opportunity cost for cotton (in terms of wool) must also have


A) a comparative advantage in the production of wool.
B) a comparative advantage in the production of cotton.
C) an absolute advantage in the production of wool.
D) an absolute advantage in the production of cotton.
E) an absolute advantage in the production of both wool and cotton.

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