All of the following are true about international trade EXCEPT that

All of the following are true about international trade EXCEPT that




a. The gains from international trade depend on specialization with comparative advantage.
b. Absolute advantage without comparative advantage does not result in gains from international trade.
c. Absolute advantage is defined as the ability of one nation to produce a product at a relatively lower opportunity cost than another nation.
d. Where there is reciprocal absolute advantage between two countries, specialization will make it possible to produce more of each product.


Answer: c.


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