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If Spain Is Capable of Producing Either Tapas or Soccer

Question 89

Multiple Choice

If Spain is capable of producing either tapas or soccer balls or some combination of those two products,then:


A) Spain should produce the good it has an absolute advantage in producing.
B) Spain should produce the good it has a comparative advantage in producing.
C) Spain should remain self-sufficient if it can produce both efficiently.
D) Spain should trade only if it possesses the absolute advantage in the production of both goods.

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