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If Wendy Can Produce More of All Goods Than Tommy

Question 43

Multiple Choice

If Wendy can produce more of all goods than Tommy in an hour,then


A) Wendy has an absolute advantage in all goods.
B) Wendy does not need to trade with Tommy in order to achieve the gains from trade.
C) Wendy has a comparative advantage in all goods.
D) Tommy has an absolute advantage in all goods.
E) Only Tommy but not Wendy can benefit from trade between the two of them.

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