Multiple Choice
If country A exports good X to country B and country B exports good Y to country A, it is most likely that
A) A has an absolute advantage in the production of good X.
B) B has a comparative advantage in the production of good Y.
C) the opportunity cost of domestic production of good Y for country A is lowered with trade.
D) B is producing less of good Y than in the no-trade case.
Correct Answer:

Verified
Correct Answer:
Verified
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