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PPF - Comparative Advantage and Trade
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Problem 7
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Problem 10
PPF - Comparative Advantage and Trade
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2. Introductory Economic Models / PPF - Comparative Advantage and Trade / Problem 7
Problem 7
Which scenario best demonstrates comparative advantage in action?
A
A country produces both textiles and electronics equally well.
B
A country exports textiles because it can produce them at a lower opportunity cost than electronics.
C
A country imports all goods because it cannot produce them.
D
A country produces textiles and electronics at the same opportunity cost.
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