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Can a Country Have a Comparative Advantage in Producing a Good

Question 87

Multiple Choice

Can a country have a comparative advantage in producing a good without also having an absolute advantage in producing that good?


A) No, it can't because comparative advantage grows out of absolute advantage.
B) No, it can't because they are different terms for the same concept.
C) Yes, it can because comparative advantage is based upon being able to produce more and absolute advantage is not.
D) Yes, it can because each type of advantage has a different basis.

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