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Brazil can produce more beef than its partner, while the partner can produce more autos. Each country there holds an:
AExport subsidy
BExchange control
CImport quota
DAbsolute advantage
Answer & Solution
Correct answer: D. Absolute advantage
1. Each simply produces more of one good.
2. Output is what is compared.
3. Each holds an absolute advantage.
_Source: OpenStax Principles of Economics 3e, Chapter 33, International Trade._
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