MCQOPTIONS
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| 1. |
According to the theory of comparative advantage, countries gain from trade, because |
| A. | Trade makes firms more competitive, reducing their market power |
| B. | Every country has an absolute advantage in producing something |
| C. | World output can rise when each country specializes in what it does relatively best |
| D. | None of the above |
| Answer» D. None of the above | |