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In a Two-Nation Two-Good World, If Both Nations Have Identical

Question 124

Multiple Choice

In a two-nation two-good world, if both nations have identical production possibilities curves with constant costs, then one nation would have:


A) No comparative advantage over the other nation
B) A comparative advantage in one good and a comparative disadvantage in the other good
C) No absolute advantage over the other nation
D) An absolute advantage in one good and an absolute disadvantage in the other good

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