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Specialising in the Production of a Good or Service in Which

Question 115

Multiple Choice

Specialising in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except:


A) engage in mutually beneficial trade with other nations.
B) increase the variety of products that it can consume with no increase in resources.
C) consume a combination of goods that lies outside its own production possibility frontier.
D) produce a combination of goods that lies outside its own production possibility frontier.

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