Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The principle of comparative advantage provides a basis for trade when two nations have the same opportunity cost of producing a good.
B) The principle of absolute advantage provides a basis for the determination of the terms of trade between two trading nations.
C) The principle of absolute advantage forms the basis of trade when a nation can produce more goods and services compared to other nations.
D) The principle of comparative advantage provides a range of prices within which trade will occur.