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How Do Countries Know When They Have a Comparative Advantage

Question 111

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How do countries know when they have a comparative advantage in the production of a good?


A) Government accountants collect cost data from countries and analyze it to find out which country has a comparative advantage in the production of which good.
B) They know as the result of individuals trying to earn profits and buying low and selling high in the process.
C) The United Nations Economic Conference Group analyzes cost data from countries and determines which country has a comparative advantage in the production of which good.
D) There is not one major way that countries acquire this information.

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