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If a country has an absolute advantage over another country,

A. It gives up more of one good to produce another good.
B. It gives up less of one good to produce another good.
C. It should not engage in international trade with the other country.
D. It can produce more of one good than the other country can.



Answer :

GinnyAnswer

Final answer:

A country's absolute advantage allows it to produce more with fewer resources. Trade remains beneficial even if one country has an absolute advantage in all goods, through the concept of specialization in comparative advantage.


Explanation:

A country has an absolute advantage over another country if it uses fewer resources to produce a good. This means that it can produce more of a good with less input compared to another country. Even if one country has an absolute advantage in all goods, trade can still benefit both sides through specialization in comparative advantage.


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