Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. If these two countries specialize in trade according to their comparative advantage, which of the following would not be true? A) Grease will specialize in and export fish B) more of each good can be consumed in both countries C) Greece will benefit from trade more than Germany D) Some individuals in each country will be hurt

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Q: Q8

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.