Which of the following statements about production and trade is FALSE? 1. If a country has an absolute advantage in producing a good, then it also has the comparative advantage in the production of the good. II. Rich countries will generally have the comparative advantage in the production of all goods. III. If a country has the absolute advantage in the production of a good, then this country will be made better off by specializing the production of that good. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b C d I only. I and II only. I, II and III. Ill only. Answered-Incorrect 1 attempt left ad Trade 09 Your ans Res

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Comparative Advantage and Absolute Advantage Analysis

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