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The Theory of Comparative Advantage States That

Question 52

Multiple Choice

The theory of comparative advantage states that:


A) Productivity rises more quickly when countries produce goods and services for which they have a natural talent.
B) Productivity decreases when countries produce goods and services based on their natural resources.
C) All countries start out on an equal playing field.
D) Countries that operate under a policy of isolationism have a comparative advantage.

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