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If Country a Has a Comparative Advantage in the Production

Question 121

Multiple Choice

If Country A has a comparative advantage in the production of oil relative to Country B,then


A) Country A also has an absolute advantage in producing oil.
B) Country A also has an absolute advantage in producing some good other than oil.
C) the opportunity cost of producing oil is higher in Country A than in Country B.
D) the opportunity cost of producing oil is lower in Country A than in Country B.
E) Country A when compared to Country B must have an absolute advantage in producing some good other than oil.

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