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Suppose That a Nation Has an Absolute Advantage in the Production

Question 9

Multiple Choice

Suppose that a nation has an absolute advantage in the production of all goods.In this instance,it


A) has no incentive to engage in international trade
B) is producing at a point on its production possibilities frontier
C) has no unemployment
D) also has a comparative advantage in the production of those goods
E) should specialize in producing the goods for which it has a lower opportunity cost than other countries

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