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Suppose That Only Two Goods Are Produced in an Economy

Question 8

Multiple Choice

Suppose that only two goods are produced in an economy.If a country possesses the comparative advantage in the production of one good:


A) then it must also possess the comparative advantage in the production of the other good.
B) then it must also possess the absolute advantage in the production of that good.
C) then it cannot also possess the comparative advantage in the production of the other good.
D) then it cannot also possess the absolute advantage in the production of that good.

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