Multiple Choice
If one of two countries has an absolute advantage in the production of every commodity, then:
A) there is no comparative advantage and therefore no trade.
B) trade would be profitable for the inefficient country, but not for the efficient one.
C) trade would be profitable for the efficient country, but not the inefficient one.
D) total world production cannot be increased by specialization and trade.
E) none of the above are true.
Correct Answer:

Verified
Correct Answer:
Verified
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