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If China can produce cars at a lower cost than America using all Chinese-made parts, it has a comparative advantage rather than an absolute advantage. True O False

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter18: Trading With Other Nations

Section: Chapter Questions

Problem 8AA

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If China can produce cars at a lower cost than America using all Chinese-made parts, it has a
comparative advantage rather than an absolute advantage.
O True
False

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