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When Iceland Can Generate a Product Using Fewer Labor Hours

Question 148

Multiple Choice

When Iceland can generate a product using fewer labor hours and resources than the United States, an economist would say that Iceland had


A) a comparative advantage in production of the product.
B) an absolute advantage in production of the product.
C) a higher opportunity cost of producing the product.
D) no incentive to import the product, regardless of the cost-price conditions for other products.

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