Multiple Choice
Assume,for the U.S.,that the domestic price of tea without international trade is higher than the world price of tea.This suggests that
A) other countries have a comparative advantage over the U.S. in producing tea.
B) the U.S. has an absolute advantage over other countries in producing tea.
C) the U.S. will export tea if international trade is allowed.
D) American tea buyers will become worse off if international trade is allowed.
Correct Answer:

Verified
Correct Answer:
Verified
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