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ENGR.ECONOMIC ANALYSIS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following statements is TRUE?
Output per Day of Work
Food
Clothing
Country A
6.
3
Country B
1
Country A has an absolute advantage in making clothing.
Country B has an absolute advantage in making food.
Country B has a comparative advantage in making food.
Country A has a comparative advantage in making clothing.
O Country A will import the item in which it has a comparative advantage.

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