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PPF - Comparative Advantage and Absolute Advantage
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PPF - Comparative Advantage and Absolute Advantage
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2. Introductory Economic Models / PPF - Comparative Advantage and Absolute Advantage / Problem 4
Problem 4
What distinguishes comparative advantage from absolute advantage?
A
Comparative advantage is based on lower opportunity cost.
B
Comparative advantage is only applicable to large economies.
C
Comparative advantage is based on producing more goods with the same resources.
D
Comparative advantage requires more resources.
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