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A Nation Has a Comparative Advantage in the Production of Cars

Question 24

Multiple Choice

A nation has a comparative advantage in the production of cars over another nation if:


A) ​it can produce cars with fewer resources than the other country.
B) ​it can produce cars at a lower opportunity cost than the other country.
C) ​it can produce cars at a higher opportunity cost than the other country.
D) ​it can produce cars at the same opportunity cost and its consumers have a stronger preference for cars than consumers in the other country.

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