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When the Principle of Comparative Advantage Determines Trade, Then a Country

Question 197

Multiple Choice

When the principle of comparative advantage determines trade, then a country will


A) specialize only in that good with the highest opportunity cost.
B) specialize only in goods with the lowest opportunity costs.
C) specialize only in that good where output is less per worker hour than another country.
D) specialize only in that good where production costs are more than average total costs.

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