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If China Is Capable of Producing Either Teddy Bears or Toy

Question 123

Multiple Choice

If China is capable of producing either teddy bears or toy trains or some combination of the two, then


A) China should specialize in the product in which it has an absolute advantage.
B) it would be impossible for China to have an absolute advantage over another country in both products.
C) it would be difficult for China to benefit from trade with another country if China is efficient in the production of both goods.
D) China's opportunity cost of teddy bears is the inverse of its opportunity cost of toy trains.

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