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Suppose That Only Two Goods Are Produced in an Economy

Question 84

Multiple Choice

Suppose that only two goods are produced in an economy. If a country possesses a comparative advantage at producing one good, then it:


A) must also possess a comparative advantage at producing the other good.
B) must also possess an absolute advantage at producing that good.
C) cannot also possess a comparative advantage at producing the other good.
D) cannot also possess an absolute advantage at producing that good.

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