3. Are the following statements true or false? Explain in each case. (a) "Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods." (b) "Certain very talented people have a comparative advantage in everything they do." (c) "If a certain trade is good for one person, it can?t be good for the other one."

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Comparative Advantage and Absolute Advantage Analysis

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