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    Exam 2: The Economic Problem
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    Country a Can Produce 1 Cello by Giving Up the Production
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Country a Can Produce 1 Cello by Giving Up the Production

Question 5

Question 5

Multiple Choice

Country A can produce 1 cello by giving up the production of 5 guitars. Country B can produce 1 guitar by giving up the production of 4 cellos. In which good does country A have a comparative advantage?


A) cellos
B) guitars
C) both goods
D) neither good

Correct Answer:

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