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Question 4 2 pts Assume both Italy and Greece produce only two goods: wine and olive oil. If Italy holds a comparative advant

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Answer : The answer is option D.

If a country has comparative advantage in production of a good then it not means that the country has absolute advantage in the production of another good. So, here we cannot say that the country Italy has absolute advantage in the production of olive oil. Hence options A, B, C and E are not correct. Therefore, option D is the correct answer.

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